Topic: What gives tether the right to buy our bitcoin?!? (Read 257 times)

In that case I'm pretty certain that Bitfinex will issue a token or whatever investment round so that it has enough of x/y/z assets to back up at least $1-$2 billion of USDT, and people will swallow it. It's impossible even for regulators to get it down. It has enough adoption, enough exchanges on board, etc. It's not going anywhere.

People just need to stop selling their precious Bitcoin for something that has been minted out of thin air, not even the more reputable stablecoins. It's shite all together.

Tether's value is only from backing in an abstract sense. What keeps it actually pegged to the dollar is the ability -- at least for some entities -- to redeem for USD at 1:1. If USDT goes much below that value, it makes sense for these entities to arbitrage.

Exchanges are just listing USDT like any other altcoin because there is demand for it.

Other exchanges believe that tether has its own unique value without even seeing the proof firsthand. It's like they banded together and allowed tether to be traded on their platforms and luring people to use it, and most of us, if not all, tend to buy all these and use tether. Even up to now, we can't see the dollars which Tether claims to have for the stablecoin's value, and I doubt we'll ever see those. As long as there are no solid regulations in creating stablecoins, many would still be created and we'll be asking questions after we have been duped.

Well, it's your right to hate stablecoins, but it's the right of those who make them to do whatever they want unless they directly violate anything. After all, what gives the right to countries' central banks to print fiat? And tether is claimed to be backed up 100% by something (I guess the $1 per 1 USDT is not a thing anymore, but it's supposed to be 1 USDT per 1 something like stock). As for your worries about Bitcoin - Tether is way too different to be a thread anyway. Tether is not volatile, but it makes it kind of a lot like fiat. People invest in Bitcoin, expecting to profit from it, and you cannot invest in Tether. People use Bitcoin to be free from centralized authorities, and with Tether you're not free.

Ever heard of inflation? What do you think would happen if they "keep printing" Tether to buy bitcoin?

Logically, the price (in Tether) for bitcoin will skyrocket. Good luck keeping that usd reserve in check, especially when the next bitcoin fluctuation (down) comes.

If you think bitcoin is threatened somehow by Tether, i think you are wrong. We can laugh at this, Bitfinex is just one more actor in the market, and i don't think it is even among the largest whales, no matter how mighty an exchange is.

Oh and if they do this "printing" unchecked, it will seriously press its price against the USD down, their reserves will empty in no time. I know, because countries have made this mistake in history countless times, with the same results, always. I'm currently living in one...

Your comment actually made me even more scared of Tether. Yet more pressure against it, which will make them burn more reserves, which will...
It won't end well, and they have already a past mistake not well atoned for.

Yet another reason why these so called "stable coins" aren't as stable as some people believe. In depends a lot in their monetary policy, pretty much like an old fashioned central bank. Will they act like the West Germany of the 60ies? or today's Venezuela? Something between? Just because its a private entity doesn't make them any less or more free of making the same mistakes.

"Printing" is bad, induced inflation is the very reason bitcoin came to put an end to that practice. Talk about a backwards mindset...

'What gives tether the right to buy our bitcoin'

Someone letting their bitcoins go in return for it? That's how it usually works. I suggest you track them down and ice pick them in the balls until they stop moving.

Job jobbed.

In any case, tether can be a threat to tether holders. If those accusations against tether turn out to be true, any harm that it could cause on Bitcoin would be temporary, but for tether holders it would be devastating.

tether isn't buying bitcoin, people are.

but none of these discussions matter in my opinion. when you want to speculate about what happens to bitcoin when tether goes down then you have to discuss two things:
1. the volume that is coming from bitcoin/tether pair
if compared with volume that comes from bitcoin/real_fiat pairs then it is negligible specially considering the fact that bitfinex fakes its trading volumes a lot.
so the conclusion from this is realistically its death should not affect bitcoin that much if at all.

2. the market reaction.
this is an entirely different beast because we can never speculate how the market is going to react to certain scenarios. for instance we recently had a huge exchange hack (Binance) that they also caused a lot of drama online with their request for "roll back"! many speculated that it will cause a big drop in bitcoin price... but guess what, price went up instead!
the same thing is true in case of tether. we can't predict what will happen, there is a good chance that it will affect bitcoin price by a lot but it can still be ineffective too.

There's a lot of new stable coins popping out recently. Hopefully it could take out Tether market share to prevent more centralization. I don't know which stable coins is the best so it's better not to have any dominance atm. We might end up with fiat pair and DEX in the end though.

Tether will implode eventually and when it does, Bitcoin would be pulled down with it. There are lots of allegations of Tether being "printed" from thin air, without the actual backing of physical dollars and regulatory authorities are digging deep to expose this.

The unfortunate thing is that Bitcoin and Tether is a very popular trading pair and when Tether goes down, it might have a massive impact on the Biitcoin price. Let's hope everything is above board with Bitfinex's operation, because it might be the next Mt Gox, if they are cheating the system and if they get exposed. 

I am not sure but we know that the term "printing" is not adequate or appropriate for something that is digital in nature...maybe the right term is "minting" or maybe just producing in the case of Tether or USDT. I agree that there is something sinister with Tether and there had have been many accusations of something bad going on under the scene for this stablecoin. Stablecoin is supposed to be backed by real assets otherwise it can never be called stable anymore...and this is one area where many stablecoin can be failing. Maybe they just want to get something out of thin air...an idea which is not contributing a lot to the stability and longevity of this industry.

It is users' consensus which gives it right.

Even idiots' consensus is also a consensus anyway.

Whether bitcoin' consensus is more superior than tether's is just another topic.

just FYI there is no difference between Tether and any of the other stablecoins that exist today, they are all the same centralized and highly risky altcoins that you should approach with extreme caution.

the millions of dollars that are circulating in the altcoin markets that require Tether to be traded since 99% of the altcoin exchanges don't have fiat since they want to stay clear of KYC and the regulations and banks and most of them have Tether.

if they printed Tether and bought bitcoin with it, they have to pay regular users Tether and take their bitcoin. those regular users now have a lot of Tether in their pockets. it won't remain there! that is the "circulating supply" and eventually they would start using it for something, mostly selling for fiat since that is what they wanted when they sold their bitcoins. and when they do that, Tether price should crash hard. has it crashed? no! so your theory is false.

there is no such thing as bitcoin maximalist, and tether is not a threat to bitcoin. all that will happen is that when bitfinex goes down eventually we see a drop in bitcoin price and some drama for about a month or two be fore we go back to normal again.

Tether is a mysterious coin, the value of Tether is equal to $ 1.  many people think that the value of Tether is backed up by USD.  but in reality, Tether Limited does not have an audit that promises USD reserves. 
Tim Swanson said that Tether will have a negative impact on other crypto and market volatility. 
Charlie Lee said that the practice of printing USDT that he considered not backed up with USD in a bank account would affect and control the Bitcoin market.

Tether's the scariest thing in crypto guys

Supply and demand is giving them right to buy our BTC. If people are accepting tether for their bitcoins they are doing it. If nobody traded in this pair USDt would exist only in bitfinex insider trading and this wouldn't be enough to boy "our" bitcoin. They would be only buying and selling their own bitcoins.


The difference is that willy bot was trading for fake USD which was accepted and known by everyone. USDt isn't as popular but still popular enough for people to trust it. If that trust is ever broken there will be no more tether price pumping. It's about time people accepted the reality that usdt is fake money backed mostly by trust not USD.

Other exchanges could inject fake USD too and we would never know it. Wasn't the Willy Bot on Mt. Gox doing that -- trading with unbacked assets? The only difference is that Tether publishes the transactions on a blockchain.

Apparently, Tether has been issuing USDT "on credit" to one or more specific traders. Galaxy Digital (Mike Novogratz) was named in the last court filing. They are probably involved:

I hate tether. I’m for stablecoin but something feels so off here.
What gives Bitfinex the right to keep printing 100million tether?
Is it done simply because someone feels like it? Or is there a reason they keep printing 100million? Or is it simply to buy Bitcoin?
If you are a bitcoin maximalist, you have to see that tether is Bitcoins biggest threat.