Topic: Bitcoin price- If Tether (USDT) go down, will it be good for Bitcoin? - page 3. (Read 898 times)
December 14, 2019, 10:58:26 AM
Well, based on the article it just pretty much said about how the lawsuit is filled with accusations, and accusations only. Assuming it is true, and Tether goes down, I doubt it could impact Bitcoin price in the long run. Sure, FUD may happen/occur when Tether goes down, but BTC price shouldn't generally be affected by it. Unlike the past, Tether isn't really the only stable coin available out there, and I really doubt stable coins could impact BTC price that much.
December 14, 2019, 10:23:35 AM
The whole situation around USDT for me personally is very non-transparent and pretty much in some gray area. Someone tells you that something is backed by USD, then it is not fully backed, but it is not known with what is backed 26% of USDT... I find stable coins useful in some situations, but there must be strict controls so anyone can not print as much as they want and to claim that everything is backed by fiat.
figmentofmyass scenario 2 really looks pretty ugly, and I hope it never happens because the USDT has really become something most take for granted without thinking about the risks it carries with it.
figmentofmyass scenario 2 really looks pretty ugly, and I hope it never happens because the USDT has really become something most take for granted without thinking about the risks it carries with it.
December 14, 2019, 05:42:12 AM
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
They were backed 74% by cash at the time. The LEO offering made them solvent, right?
I think it's doubtful they'll recover the money. It was in the custody of unlicensed money transmitters and commingled with Colombian drug cartel money. I'm not sure how Polish jurisdiction works (I think that's where most of the funds were seized) but in the US I feel like the police would just take it using civil asset forfeiture.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
Yep, but things could change quickly if (for example) the US government seized some more bank accounts and withdrawals stopped flowing.
December 14, 2019, 05:24:09 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
December 14, 2019, 03:34:46 AM
Of course it will be good short term as all the usdt will flee and guess where its going to go?
there are 2 scenarios.
1. there's regulatory actions, bank account freezes/seizures, insolvency---but tether and bitfinex remain operational and able to meet day-to-day liquidity requirements
2. the FBI and USAO come after tether and bitfinex---domains and servers seized, personnel arrested, banks continuing to work with them become criminal accessories, etc
scenario #1 is what we've already seen for years. it's the classic "tether FUD". people panic buy bitcoin/altcoins to get out of tether, which drives market prices upwards.
we've never seen scenario #2. i reckon if that happened, all USDT markets would quickly fall to $0 and it would have severely negative effects on the entire crypto market. not only would bitfinex and tether customers be crushed, but so would USDT holders at binance, bittrex, poloniex, okex, and other major exchanges, OTC traders......it would be ugly. a lot of capital would go up in smoke. it would be a much bigger, uglier version of the mt gox collapse.
December 14, 2019, 02:59:35 AM
Imho it would be good. At least on long term.
Imho USDT, being not truly backed by anything, is the key of the Bitcoin price manipulation.
And trading will not die off because USDT will be gone, no. There are other stable coins, properly backed and audited, ready to take the place.
Imho USDT, being not truly backed by anything, is the key of the Bitcoin price manipulation.
And trading will not die off because USDT will be gone, no. There are other stable coins, properly backed and audited, ready to take the place.
December 14, 2019, 01:30:25 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
December 14, 2019, 12:51:01 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
the answer is obviously yes it will affect the entire market negatively.
but the less obvious part is the reason for it. the reason has nothing to do with relationship between tether and bitcoin, despite what most FUDs want you to believe. the only reason would be the fact that many big exchanges such as bitfinex itself rely heavily on tether and a lot of traders are already lulled into a false sense of security while using this centralized altcoin. its downfall (which in my opinion is inevitable) will cause panic and that panic will be the reason for price drops.
additionally i think altcoins will take the biggest hit from this since for example if 1 out of 10 bitcoin exchanges has tether, 9 out of 10 altcoin exchanges have ONLY tether and nothing else.
December 13, 2019, 11:11:22 PM
Regarding the legal problem, I don't think that will prosper, Bitfinex is an Exchange that has many traders who have placed their full trust there, and in my personal experience I have seen that most Exchanges are guided by the price of Bitfinex.
It's a classic movement that some traders do, especially the whales, but if so, it smells really good, we could see a beautiful bullish rebound, maybe that's what it takes to cheer up this Christmas.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
It's a classic movement that some traders do, especially the whales, but if so, it smells really good, we could see a beautiful bullish rebound, maybe that's what it takes to cheer up this Christmas.
December 13, 2019, 10:23:48 PM
Of course it will be good short term as all the usdt will flee and guess where its going to go?
December 13, 2019, 10:10:59 PM
Read an article on another lawsuit on Bitfinex controlled Stable coin Tether (USDT).
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
It will have an effect but I think it will not really cause a massive dump in the prices of Bitcoin and altcoins. In fact I think the opposite is true. It will somehow expand the market cap of Bitcoin and altcoin. There are so many crypto traders who are choosing or trading USDT against other cryptocurrencies because it is stable. But if it will go down, these traders will be forced to take their money from USDT and transfer them into Bitcoin or altcoins. The trade will be much better this way rather than vs the USDT.
December 13, 2019, 09:47:42 PM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
December 13, 2019, 09:06:44 PM
Read an article on another lawsuit on Bitfinex controlled Stable coin Tether (USDT).
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
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