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Tether price manipulation

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Re: Tether price manipulation

#411

Post by ProZsolt »

doggosphere wrote: post #339
schmichael wrote: post #333

Earlier quoted context omitted.

> With Bitcoin you own property that can never be confiscated or debased by any government. Private keys can be confiscated like anything else. They won't do you much good if you're thrown in prison for not turning them over if legally compelled. Sure you can try to hide your ownership, but my point is that actual cryptocurrencies are only one layer of very deep opsec you need to resist state actors. For the common i…

A wrench attack will always be the easiest vector. That said, there is no other asset in history that gives you this level of security for such marginal cost. The cost of securing $100 is essentially the same as the cost of securing $100m.

The chances of loosing $100 is essentially the same as the chances of loosing $100m. If you loose your private key nobody can help you recover your money.

Re: Tether price manipulation

#412

Post by doggosphere »

ProZsolt wrote: post #411
doggosphere wrote: post #339

Earlier quoted context omitted.

A wrench attack will always be the easiest vector. That said, there is no other asset in history that gives you this level of security for such marginal cost. The cost of securing $100 is essentially the same as the cost of securing $100m.

The chances of loosing $100 is essentially the same as the chances of loosing $100m. If you loose your private key nobody can help you recover your money.

I would hope that someone with $100m in crypto is smart enough to not leave their seed words on a piece of paper on their coffee table.

Your exactly correct that nobody can help you recover your money if you lose your keys.

Re: Tether price manipulation

#413

Post by doggosphere »

incrudible wrote: post #409
doggosphere wrote: post #394

Earlier quoted context omitted.

Gold is relatively stable and has physical backing. Up to 4% of China's gold reserves could be fake. Gold fraud article: https://economictimes.indiatimes.com/news/international/worl... Bitcoin is open source and completely auditable in an instant. As the price of gold goes up, the quantity supplied goes up. Bitcoin's issuance protocol is fixed and unchangeable unless the network agrees. The cost of securing or transp…

Securing $1 billion of bitcoin? Who needs to secure $827 million of Bitcoin? Securing $937 million of Bitcoin is not a killer app. In all seriousness, securing the value of Bitcoin is the problem that is not easily solved.

Bitcoin is bits of data on a network. It does exactly what its supposed to do; a dictionary for strings to integers.

Securing external value to people is not a goal or responsibility of Bitcoin. That's simply a consequence to how we as humans choose to use scarce assets.

Re: Tether price manipulation

#414

Post by xenihn »

WMX123 wrote: post #390
xenihn wrote: post #371

Earlier quoted context omitted.

Scenario: Eth is $400 on Coinbase, Bitcoin is $12000 on Coinbase Print 1,000,000 Tether Buy $1,000,000 of Eth on an exchange that supports Tether Sell $1,000,000 of Eth on Coinbase Buy $900,000 (arbitrary post-sale amount from selling Eth) of Bitcoin on Coinbase Another scenario: Bitcoin is $12000 on Coinbase Bitcoin is $12000 on another exchange that supports Tether Print 1,000,000 Tether Buy $1,000,000 of Bitcoin o…

I still don't see that artificially inflating coinbase bitcoin. plus only bitfinance would be able to print/create tether. also, there's no evidence that companies what you claim they could do.

>I still don't see that artificially inflating coinbase bitcoin.

I don't know how to explain it any more clearly to you.

>plus only bitfinance would be able to print/create tether

Yes, but whoever controls the printing could then use the Tethers on any exchange that supports them.

>also, there's no evidence that companies what you claim they could do

You asked for an explanation of how it could be done, not evidence.

Re: Tether price manipulation

#416

Post by gillesjacobs »

long wrote: post #356
gillesjacobs wrote: post #288

Earlier quoted context omitted.

Is there any proof or data on Tether issuance preceding rallies? Because I have seen this claim often made on Twitter, but never with any sources. I personally dislike Tether and avoid it, but strong claims require strong evidence.

Here's an econ paper that studies that question: https://www.researchgate.net/publication/342185292_Is_Bitcoi...

Thanks, I will have to read it carefully, but from the abstract it doesn't seem as simple as "increased Tether printing makes BTC rally." But if there is in fact a statistically significant correlation, I would personally wager there's causation and hedge my bets accordingly.

Re: Tether price manipulation

#417

Post by nly »

jerry1979 wrote: post #375
rednerrus wrote: post #351

Earlier quoted context omitted.

The hurdle for bitcoin is finding a way for people to turn it into a currency they can use. This is where you end up with a centralized exchange layer built on top of it. I can make a $12,000,000 transaction for $.35 but if I actually want to get the money, I have to pay 2.5% to a legit exchange or take my chances on some janky ass exchange. Why not just transfer the money via ACH and pay the small fee and save mysel…

You can start by asking people to take bitcoin for various transactions. For example, my friends and I all use it settle debts between each other.

Bet you don't lend one another bitcoin though

Re: Tether price manipulation

#418

Post by triangleman »

Tepix wrote: post #62

I agree that USDT is fishy and it may be behind a large percentage of the gains in BTC and the other coins. However, there is also another possible explanation. When investors want to buy BTC they first to go Binance and ask for USDT in exchange for USD. Binance creates new USDT for them. Then they use the USDT to buy BTC (reverse causality). Just saying it's possible, but I believe Jacob Oracle to be right.

Can binance "create new USDT" or do they need to ask Tether to create it for them, exchanging USD?

Re: Tether price manipulation

#419

Post by long »

gillesjacobs wrote: post #416
long wrote: post #356

Earlier quoted context omitted.

Here's an econ paper that studies that question: https://www.researchgate.net/publication/342185292_Is_Bitcoi...

Thanks, I will have to read it carefully, but from the abstract it doesn't seem as simple as "increased Tether printing makes BTC rally." But if there is in fact a statistically significant correlation, I would personally wager there's causation and hedge my bets accordingly.

I think the abstract does effectively say that: "these patterns are most consistent with the supply‐based hypothesis of unbacked digital money inflating cryptocurrency prices." And this point is made more forcefully in the paper.

FWIW, I don't have a strong opinion on the evidence presented in the paper -- the analyses seem sensible, but this isn't my field of expertise, so I'd be hard pressed to point out, for example, what alternative analyses they could / should have done.

Also, it's not even obvious to me that unbacked Tether causing the BTC price rallies is necessarily a reason to pull out; markets are weird.

Re: Tether price manipulation

#420

Post by elvatoloco55 »

incrudible wrote: post #409
doggosphere wrote: post #394

Earlier quoted context omitted.

Gold is relatively stable and has physical backing. Up to 4% of China's gold reserves could be fake. Gold fraud article: https://economictimes.indiatimes.com/news/international/worl... Bitcoin is open source and completely auditable in an instant. As the price of gold goes up, the quantity supplied goes up. Bitcoin's issuance protocol is fixed and unchangeable unless the network agrees. The cost of securing or transp…

Securing $1 billion of bitcoin? Who needs to secure $827 million of Bitcoin? Securing $937 million of Bitcoin is not a killer app. In all seriousness, securing the value of Bitcoin is the problem that is not easily solved.

Michael Saylor and every single fund that have bought millions in Bitcoin?

Millions of people that are trying to secure value from totalitarian goverments? Is it me or people here are being trolls on purpose?

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