Unless there are bots or the market is manipulated well enough on the medium/long term, this pump would result in a huge loss for the man who spends their USDT to buy 1B $SHIT.
But I doubt there are bots on a coin that has no trading volume. A total of 3BTC buy orders mean an insignificant amount of money is traded, so you won't earn much off it with a bit. Therefore, the only way this could end is there would be a huge a$$ candle on the USDT graph and the price would then return back to its initial value: 1 sat.
Topic: USD / Crypto Pairing question - page 2. (Read 331 times)
Good question, i'll add one new perspective.
Currency trading is nearly always a 1:1 impact - meaning that the currency being sold and the currency being bought are the only two currencies being directly affected by the that transaction. There is, however an indirect impact. Say someone in United States decides to by Yen, lots of Yen. Well say that Yankee has a friend who's Canadian. And that Canadian sees what his friend is doing, buying all this Yen with his USD. So much so that this friend decides to buy Yen too, with his Canadian Dollars. Now, the CAD may go down as a trend of this first activity in USD to buy Yen.
Buying behavior is very psychological, more so than most people realize. It's something that the crypto industry is incredibly sensitive too. Something to keep in mind!
Currency trading is nearly always a 1:1 impact - meaning that the currency being sold and the currency being bought are the only two currencies being directly affected by the that transaction. There is, however an indirect impact. Say someone in United States decides to by Yen, lots of Yen. Well say that Yankee has a friend who's Canadian. And that Canadian sees what his friend is doing, buying all this Yen with his USD. So much so that this friend decides to buy Yen too, with his Canadian Dollars. Now, the CAD may go down as a trend of this first activity in USD to buy Yen.
Buying behavior is very psychological, more so than most people realize. It's something that the crypto industry is incredibly sensitive too. Something to keep in mind!
The increase in the bitcoin price is directly effective with the increase in the dollar supply. People just think it offers a new economy. Can bitcoin increase in war or disaster situations? This can be. But it may be just the opposite. Restricting the supply of the dollar can pose a problem.
That doesn't change the fact that there is only only 3 BTC buy order for it does it?
Correct. The USDT and BTC markets are entirely separate. A buy or sell order on one is not reflected on the other.If the USD Value goes up in value , it doesn't mean that the BTC value rises as well does it?
Not automatically. If both markets were being actively traded, you would expect any big price movements on one to be quickly mirrored on the other. If one market has no liquidity though, then it won't move automatically just because the other has.(My thinking is that there must be a buyer of said asset and a seller of said asset) If no one is buying the BTC pair but only the USDT pair , then how would it have value except in USD value maybe?
Again, correct. The price on the BTC market will be whatever the price was of the last trade that was made. The same is true of the USDT market. If there are no buyers and sellers on one market, then the price will not change on that market.And if this is the case , why wouldn't everyone just make their own fiat trading pairs and use that to pump their shitcoins to the sky by doing Q.E?
There's nothing stopping you from trying. You'll need to get exchanges to accept your coins, create the markets you need, and get users to buy in though.
So lets say this. I have a shitcoin. Lets called it $SHIT.
Now $SHIT is worth 0.00000001 BTC (Or $0.000087USD at time of writing) and there is a 1 BTC buy order for it on all exchanges (Say 3 of them) Total 3BTC in Buy orders total.
Now lets say that all 3 of those exchanges have now added USDT / $SHIT
And someone uses their USDT to buy up 1B of them and lets say it pushes the price of USD from $0.000087 -> 1 Dollar.
That doesn't change the fact that there is only only 3 BTC buy order for it does it?
If the USD Value goes up in value , it doesn't mean that the BTC value rises as well does it?
(My thinking is that there must be a buyer of said asset and a seller of said asset) If no one is buying the BTC pair but only the USDT pair , then how would it have value except in USD value maybe?
Am i correct with my thinking? And if this is the case , why wouldn't everyone just make their own fiat trading pairs and use that to pump their shitcoins to the sky by doing Q.E?
Now $SHIT is worth 0.00000001 BTC (Or $0.000087USD at time of writing) and there is a 1 BTC buy order for it on all exchanges (Say 3 of them) Total 3BTC in Buy orders total.
Now lets say that all 3 of those exchanges have now added USDT / $SHIT
And someone uses their USDT to buy up 1B of them and lets say it pushes the price of USD from $0.000087 -> 1 Dollar.
That doesn't change the fact that there is only only 3 BTC buy order for it does it?
If the USD Value goes up in value , it doesn't mean that the BTC value rises as well does it?
(My thinking is that there must be a buyer of said asset and a seller of said asset) If no one is buying the BTC pair but only the USDT pair , then how would it have value except in USD value maybe?
Am i correct with my thinking? And if this is the case , why wouldn't everyone just make their own fiat trading pairs and use that to pump their shitcoins to the sky by doing Q.E?
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