Looks like the Tether scam to prop up Bitcoin is now going to be exposed.
Bitcoin Twitter must be going bananas !!
https://uk.finance.yahoo.com/news/bitcoin-nosedives-regulators-investigating-whether-171100470.html?guccounter=1
Topic: Tether. BTC. Trying to understand the flow. (Read 188 times)
did Tether increase the price of bitcoin? maybe contributed to it but i'd say the contribution was less than 5%
will bitcoin fall if Tether collapses? yes because of two things: 1. this FUD got too big. 2. Tether fall equals bitfinex fall and being a big exchange can cause a big drop in bitcoin price like when it got hacked and price fell 30%. but i don't expect more than 1 month of downtime.
will bitcoin fall if Tether collapses? yes because of two things: 1. this FUD got too big. 2. Tether fall equals bitfinex fall and being a big exchange can cause a big drop in bitcoin price like when it got hacked and price fell 30%. but i don't expect more than 1 month of downtime.
Depends on how big Tether market is.
Every single person who sold their BTC for USDT basically did not sell.
Their selling pressure was negated by these fakely printed USDT that are not backed by $1.
So, it was phantom BTC buying power. Inflated the price.
If USDT collapses, it won't directly affect. You just lose your USDT.
Has no effect on BTC, except sentiment, which can affect price.
https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc
I just read this.
Ok, this is my understanding.
People accept that 1 Tether (USDT) is backed by 1 USD (maybe it was at first)
So, BTC seller accepts 1 USDT instead of 1 USD. (same thing, to him)
But, if USDT is fake, and there is no USD backing it, then USDT will become worthless in the event of a “bank run”
Allegation is that Tether was minting fake USDT's and using them to buy BTC.
Tether people have tricked BTC holders to trade their good BTC for fake USDT crypto.
This would cause BTC price to increase, but now what?
If the new BTC owners do not sell, there is no selling pressure.
Just no new additional buying pressure, if the Tether is exposed as not backed by USD.
I just read this.
Ok, this is my understanding.
People accept that 1 Tether (USDT) is backed by 1 USD (maybe it was at first)
So, BTC seller accepts 1 USDT instead of 1 USD. (same thing, to him)
But, if USDT is fake, and there is no USD backing it, then USDT will become worthless in the event of a “bank run”
Allegation is that Tether was minting fake USDT's and using them to buy BTC.
Tether people have tricked BTC holders to trade their good BTC for fake USDT crypto.
This would cause BTC price to increase, but now what?
If the new BTC owners do not sell, there is no selling pressure.
Just no new additional buying pressure, if the Tether is exposed as not backed by USD.
Tether already has a solution - they are printing euro-tethers:
See the following, they now have 86 million euro-tethers:
https://wallet.tether.to/transparency
This is madness in my opinion - they'll have the european regulators after them as well as the American ones.
I also don't know why people haven't sold their tethers and moved into other coins. I guess some people just like living dangerously.
every theory about relationship between Tether and Bitcoin price has always been full of holes. none of them make any sense.
USDT has been around for a very long time and it has ALWAYS been a shitcoin but a convenient one because it has always also been supposed to be worth 1 USD. if you check the website, they don't even guarantee exchange of USDT with USD.
the thing is, somebody wanted to make some new FUD up so they chose the thing that was already shit. and the FUD caught on because it was easily believable.
is Tether shady? yes
is Tether shit? yes
is Tether scam? maybe. it could run away but the risk is the same as always.
did Tether increase the price of bitcoin? maybe contributed to it but i'd say the contribution was less than 5%
will bitcoin fall if Tether collapses? yes because of two things: 1. this FUD got too big. 2. Tether fall equals bitfinex fall and being a big exchange can cause a big drop in bitcoin price like when it got hacked and price fell 30%. but i don't expect more than 1 month of downtime.
USDT has been around for a very long time and it has ALWAYS been a shitcoin but a convenient one because it has always also been supposed to be worth 1 USD. if you check the website, they don't even guarantee exchange of USDT with USD.
the thing is, somebody wanted to make some new FUD up so they chose the thing that was already shit. and the FUD caught on because it was easily believable.
is Tether shady? yes
is Tether shit? yes
is Tether scam? maybe. it could run away but the risk is the same as always.
did Tether increase the price of bitcoin? maybe contributed to it but i'd say the contribution was less than 5%
will bitcoin fall if Tether collapses? yes because of two things: 1. this FUD got too big. 2. Tether fall equals bitfinex fall and being a big exchange can cause a big drop in bitcoin price like when it got hacked and price fell 30%. but i don't expect more than 1 month of downtime.
Crypto actually really needs something like Tether for altcoins to grow. If they can solve sentiment (obviously banks and bitcoin maximalists don't want that), altcoins will hold value better.
Every time BTC farts portfolios get decimated!
Every time BTC farts portfolios get decimated!
The concept of TETHER was born due to banking restriction in the crypto eco system, a way for someone to accept FIAT in a stable way and have that represented with 1 USD worth of buying power.
The concept is interesting, I hope that they have provable stores in the future and the government does not move at them with hostility for pegging something to a digital asset, when banks refused to assist in the process due to de-risking.
The concept is interesting, I hope that they have provable stores in the future and the government does not move at them with hostility for pegging something to a digital asset, when banks refused to assist in the process due to de-risking.
Tether is risky whatever the bubble tether created the bubble for bitcoin now it is recovering from bubble
You will if people try to cash out.
Yep if they cant cash out then it is another scam which people have been sucked into. Lets hope they do have the money in the bank because this could hurt a lot of exchanges
You will if people try to cash out.
Will we ever know if Tether is actually backed by real USD though?
https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc
I just read this.
Ok, this is my understanding.
People accept that 1 Tether (USDT) is backed by 1 USD (maybe it was at first)
So, BTC seller accepts 1 USDT instead of 1 USD. (same thing, to him)
But, if USDT is fake, and there is no USD backing it, then USDT will become worthless in the event of a “bank run”
Allegation is that Tether was minting fake USDT's and using them to buy BTC.
Tether people have tricked BTC holders to trade their good BTC for fake USDT crypto.
This would cause BTC price to increase, but now what?
If the new BTC owners do not sell, there is no selling pressure.
Just no new additional buying pressure, if the Tether is exposed as not backed by USD.
I just read this.
Ok, this is my understanding.
People accept that 1 Tether (USDT) is backed by 1 USD (maybe it was at first)
So, BTC seller accepts 1 USDT instead of 1 USD. (same thing, to him)
But, if USDT is fake, and there is no USD backing it, then USDT will become worthless in the event of a “bank run”
Allegation is that Tether was minting fake USDT's and using them to buy BTC.
Tether people have tricked BTC holders to trade their good BTC for fake USDT crypto.
This would cause BTC price to increase, but now what?
If the new BTC owners do not sell, there is no selling pressure.
Just no new additional buying pressure, if the Tether is exposed as not backed by USD.
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