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What's Happening with Bitcoin Prices

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Re: What's Happening with Bitcoin Prices

#5

Post by ComputerGuru »

cantrip wrote: post #2

Anyone speculating about what's going on with Bitcoin without at least mentioning Tether is out of the loop.

I would agree except the article wasn’t about any specific cause or even this particular wave; just a general explanation of the bitcoin phenomenon that may even be taken as a general explanation for investment any bubble in general.

Re: What's Happening with Bitcoin Prices

#6

Post by eximius »

robbyt wrote: post #3
cantrip wrote: post #2

Anyone speculating about what's going on with Bitcoin without at least mentioning Tether is out of the loop.

I'm out of the loop. What's the deal with tether?

Issue Tether (it is issued, not mined), trade Tether for Bitcoin, BTC price in Tethers increases, due to stated and believed peg of Tether to USD, BTC raises in USD price due to arbitrage executioners.

More details:

https://seekingalpha.com/article/4129543-bitcoin-one-way-go-...

Re: What's Happening with Bitcoin Prices

#7

Post by econner »

robbyt wrote: post #3
cantrip wrote: post #2

Anyone speculating about what's going on with Bitcoin without at least mentioning Tether is out of the loop.

I'm out of the loop. What's the deal with tether?

Tether is supposed to be backed 1:1 by US dollars and function as a non-volatile way to move money across exchanges. It's market cap is ~$815M. Lots of people believe that Bitfinex, the creator of Tether, is not actually holding $815M to back it. Instead they believe Bitfinex is creating Tether out of thin air and could be using it to inflate the price of Bitcoin.

Re: What's Happening with Bitcoin Prices

#8

Post by simooooo »

econner wrote: post #7
robbyt wrote: post #3

Earlier quoted context omitted.

I'm out of the loop. What's the deal with tether?

Tether is supposed to be backed 1:1 by US dollars and function as a non-volatile way to move money across exchanges. It's market cap is ~$815M. Lots of people believe that Bitfinex, the creator of Tether, is not actually holding $815M to back it. Instead they believe Bitfinex is creating Tether out of thin air and could be using it to inflate the price of Bitcoin.

How would them issuing tether out of thin air inflate the price of bitcoin?

Re: What's Happening with Bitcoin Prices

#9

Post by cantrip »

ComputerGuru wrote: post #5
cantrip wrote: post #2

Anyone speculating about what's going on with Bitcoin without at least mentioning Tether is out of the loop.

I would agree except the article wasn’t about any specific cause or even this particular wave; just a general explanation of the bitcoin phenomenon that may even be taken as a general explanation for investment any bubble in general.

I disagree. There is a section of the article titled "Where is all this cash coming from?" which claims (via a Reddit thread) that it's individuals buying on credit.

Re: What's Happening with Bitcoin Prices

#10

Post by fmela »

simooooo wrote: post #8
econner wrote: post #7

Earlier quoted context omitted.

Tether is supposed to be backed 1:1 by US dollars and function as a non-volatile way to move money across exchanges. It's market cap is ~$815M. Lots of people believe that Bitfinex, the creator of Tether, is not actually holding $815M to back it. Instead they believe Bitfinex is creating Tether out of thin air and could be using it to inflate the price of Bitcoin.

How would them issuing tether out of thin air inflate the price of bitcoin?

By trading tether issued out of thin air for BTC.
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