In case someone is wondering about Tether, there has not been new coins for about a week now: https://omniexplorer.info/lookupadd.aspx?address=3MbYQMMmSkC...
Thanks, saved me checking Bitfinexed for new news.
What's Happening with Bitcoin Prices
41–50 of 109 posts
Re: What's Happening with Bitcoin Prices
#42I think the explanation is really simple. A couple of months back numerous non-technical acquaintances began expressing interest in Bitcoin with a number of them going on to purchase it -- completely independent of one another. I doubt my anecdote is particularly unique. There seems to have been a huge influx of "dumb money" on the heels of an exponential increase in media coverage. There is the possibility that I'm…
Yes, I've recently exited a large position, while an alarming number of acquaintances who have limited or no investment experience are getting each other into Bitcoin off of Facebook hype, in some cases ridiculing each other for "missing out".
This won't and well.
Re: What's Happening with Bitcoin Prices
#43Earlier quoted context omitted.
By trading tether issued out of thin air for BTC.
Why would anyone want to exchange their Bitcoins that are worth over $10,000 each on Coinbase (and can be converted to real dollars) for some tokens that are backed by nothing?
In my experience, no one has a satisfying explanation for this. Nor why this would affect the USD price of bitcoin.
Re: What's Happening with Bitcoin Prices
#44“Ever wonder why Coinbase takes about a week to “process” the sell? Or why when you buy on other exchanges you’re debited instantly but when you sell it takes a few days to be credited?”
“It’s mostly likely because these institutions don’t have the liquidity to actually pay you. The important thing to realize is the exchanges aren’t selling the Bitcoins on the open market nor are they transferring anything between wallets when you sell.‘ “
Anyone here know if this is true?
The article is based on the above assumption. If it is Ian selling my bitcoin NOW. THIS IS THE BIGGEST RISK I HAVE HEARD IN THE CRYPTO WORLD
Re: What's Happening with Bitcoin Prices
#45Anyone speculating about what's going on with Bitcoin without at least mentioning Tether is out of the loop.
I'll probably be downvoted into oblivion for hating on the latest hot internet rumor, but here is why I believe the tether rumors should be ignored:
The tether situation has been twisted into a PR campaign against bitcoin by the bcash supporters (formally the segwit2x) supports.
When the segwit2x fork was cancelled, /r/btc (a segwit2x and bcash community) and a number of popular twitter accounts suddenly started picking up the bitfinex'd anti-tether campaign. This includes a large group of what are most likely twitter bot accounts (have not tweeted in a long time, all joined around the same time, etc).
Tether/Bitfinex is working on an audit but this takes considerable time. The auditing group will not put their stamp of public approval on an audit until it has gone through the most stringent reviews.
Tether has been receiving significant "institutional" money over the past few months specifically trying to exploit the bitfinex USD lending market.
Given how Wells Fargo and other large banks have been treating any company related to the bitcoin space, it is not in Tether's best interests to publicize which banks they are using. Hopefully someday this situation will improve, but for now if you run a company in the cryptocurrency space your fiat banking is tenuous at best, therefore you do not advertise your industry to your banking partners.
Bitfinex is making $5m or more per day on a slow day, and has been for quite a while. This revenue stream can be used to support Tether if needed.
Tether's USD pair on Kraken has remained close to $1. This would be the first market to go crazy if there were an actual issue with Tethers as the tether holders would rush to redeem them at Kraken instead of via Tether themselves.
The "printing" of Tethers is now largely being sent to Bittrex and Poloniex in order to support their customers' tether balances. Tethers are a public blockchain, do the research and follow them to their actual destination.
Even if every single tether were being used to borrow margin funding on bitfinex and buy bitcoin, it would hardly make a dent in the daily BTC volume at Bitfinex. Tether "followers" make a big deal about a 15m or 30m tether generation event, but even with this being used for 3x margin on bitfinex it would hardly make a dent on the > 2.5B usd trading volume.
There are many more arguments supporting or attacking tether. I will not be responding to any comments because I have a feeling this will turn into a mess but I just wanted to throw some more information / opinions into the mix. The whole cryptocurrency world has been completely fueled, almost lives off of, FUD and rumors that would push a price up or down. This feeds right into that.
BUT:
At the end of the day you should trust no exchange, the entire point of cryptocurrency is that you control your own holdings.
Re: What's Happening with Bitcoin Prices
#46Earlier quoted context omitted.
Tether are, ostensibly, backed by $1 in a bank somewhere. Having a dollar token is very useful, since you can move in and out of crypto trading positions into a stable store of value, good old USD. Converting to real money takes a long time so you can't react to the market, and is also taxable and often has other fees on top.
> backed by $1 in a bank somewhere. Are we sure about this?
No, that’s the point, no one is sure about this. For a token that’s supposed to be redeemable in USD, the tether is extremely opaque.
Re: What's Happening with Bitcoin Prices
#47Earlier quoted context omitted.
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-...
Which BTC/tether market(s) is this happening on? I know plenty of BTC/USD markets, but I’m not familiar with which BTC/tether markets exist.
Re: What's Happening with Bitcoin Prices
#48In case someone is wondering about Tether, there has not been new coins for about a week now: https://omniexplorer.info/lookupadd.aspx?address=3MbYQMMmSkC...
Interesting. What happens if, say, Bitfinex runs out?
Re: What's Happening with Bitcoin Prices
#49I think the explanation is really simple. A couple of months back numerous non-technical acquaintances began expressing interest in Bitcoin with a number of them going on to purchase it -- completely independent of one another. I doubt my anecdote is particularly unique. There seems to have been a huge influx of "dumb money" on the heels of an exponential increase in media coverage. There is the possibility that I'm…
Pretty much all of the money in Bitcoin was dumb from the get-go. These weren't economists figuring out that something was under-valued or the system could be gamed. It was people gambling back then and that's what's continuing to happen. Like you, I noticed an increasing amount of fairly oblivious people talking about Bitcoin a while ago in our office and that's the most certain marker of an impending crash, but in…
What would you value a technology that aims to separate money and state? Does it have no value?
Re: What's Happening with Bitcoin Prices
#50I think the explanation is really simple. A couple of months back numerous non-technical acquaintances began expressing interest in Bitcoin with a number of them going on to purchase it -- completely independent of one another. I doubt my anecdote is particularly unique. There seems to have been a huge influx of "dumb money" on the heels of an exponential increase in media coverage. There is the possibility that I'm…
> I think the explanation is really simple. A couple of months back numerous non-technical acquaintances began expressing interest in Bitcoin with a number of them going on to purchase it -- completely independent of one another. I doubt my anecdote is particularly unique. There seems to have been a huge influx of "dumb money" on the heels of an exponential increase in media coverage.
That's the "pump" part of a pump-and-dump scheme.