Tether - page 3. | Bitcointalksearch.org

exstasie

legendary

Activity: 1806

Merit: 1521

Quote from: bbc.reporter on January 12, 2021, 12:06:06 AM

Tether has become a systemic risk for bitcoin.

Says who? Nouriel Roubini, Dr. Doom? He's also been saying for years that Bitcoin is headed to $0. Tongue

Nocoiners always begin their analysis from the conclusion that Bitcoin will collapse; the only thing that changes is the future cause. First it was regulatory crackdowns because of illegal activity. Then it was the Mt. Gox Willy Bot, and how it had fooled everyone into buying too high. Then it was Tether.....

I don't know exactly what a Tether collapse would look like, but I am definitely not convinced the devaluation of one of Bitcoin's primary base pairs (USDT) would lead to Bitcoin's demise. Maybe some short term chaos and volatility, but I really don't understand why people freak out about this.

What do you even mean by "systemic risk" anyway?

coinbiz

jr. member

Activity: 42

Merit: 3

I honestly can't wait for the day that tether is removed from the bitcoin/exchange ecosystem. The concept of stablecoins in general is toxic to the all of crypto.

When tether collapses, it will cause a short squeeze capital exit via altcoins, followed by full panic mode and crypto market crash. Only after that will we see true growth and long-term stability. Right now, bitcoin's true value is tainted by tether. I think we'd have a lot less volatility without tether and stablecoins. They have the opposite effect on crypto price stability as a whole. They suck the stability out of the market. I really hope it happens this year.

January 15 is a key deadline in the NYAG case, so we'll see what happens pretty soon. Or maybe nothing will happen.

bbc.reporter

legendary

Activity: 3010

Merit: 1460

@jubalix. Tether has become a systemic risk for bitcoin. We can only ask questions and speculate on its legitimacy, however, the NYAG is after it and it would not be surprising if other government agencies would also begin their own investigations because of money laundering, fraud, illegal security issuance and market manipulation.

I am shaking my head because USDT is 50% or more of bitcoin's volume. Amusingly, this questionable company called iFinex has bitcoin underpinned.

exstasie

legendary

Activity: 1806

Merit: 1521

Quote from: jubalix on January 11, 2021, 04:31:50 AM

So I think even if FUD, the tether story has sufficient noise in the net to affect the price.

I had been expecting tether to die a few years ago. The fact that it hasn't is plus in my book that tether is legit.

HOWEVER

the fact they have not been audited makes me think they are fractional reserve.

I also think most exchanges are fractional reserve in crypto.

Pretty much my opinion too, in a nutshell. It irks me that everyone hyper focuses on Tether but ignores the possibility of insolvency on every other exchange, none of whom has ever been audited. It's so strange.

Tether did admit they weren't fully backed in 2019, due to fallout from a Bitfinex-related bank seizure: https://www.bloomberg.com/news/articles/2019-04-30/tether-says-stablecoin-is-only-backed-74-by-cash-securities

After the LEO token offering later in the year, they claimed to be fully backed again, which honestly is believable to me: https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again

Quote from: jubalix on January 11, 2021, 04:31:50 AM

I kinda wish tether would just go, take the BTC hit an carry on. However that just wishful thinking, a new FUD will be invented and the cycle will continue.

Every Epoch will have its Gox.

Tether is like a cockroach. I don't like to bet against them anymore. The fact that so many people are expecting their demise makes me think it'll be someone else, maybe someone no one expects. Coinbase, Kraken, Gemini......

jubalix

legendary

Activity: 2632

Merit: 1023

So I think even if FUD, the tether story has sufficient noise in the net to affect the price.

I had been expecting tether to die a few years ago. The fact that it hasn't is plus in my book that tether is legit.

HOWEVER

the fact they have not been audited makes me think they are fractional reserve.

I also think most exchanges are fractional reserve in crypto.

In fact, except for signed addresses/crypto and dex/uni swap every other financial instrument is fractional, it's just a question of how much.

We have faked USD chaseing faked btc, so it should probably even out, excepting that real BTC is likely undervalued

I kinda wish tether would just go, take the BTC hit an carry on. However that's just wishful thinking, a new FUD will be invented and the cycle will continue.

Every Epoch will have its Gox.

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