Tether is scam and even use of Bitcoin looks unethical when you know that:
>> the power consumption of bitcoin is 160% times the energy use of Amazon, Google, Microsoft, Facebook and Apple all combined
Bitfinex and Tether required to end all trading activity with New Yorkers
501–510 of 517 posts
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#502Earlier quoted context omitted.
I've tried, six months on they are still stringing me along saying we'll get back to you. As far as I know tether only allowed a few crypto "king makers" to redeem tether, and even then, only at a very small scale.
Several exchanges list USDT/USD pair.
That isn't a redemption.
Redemption means I give the tether corporation some tether and they burn that tether and hand me back USD.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#503Earlier quoted context omitted.
Yes I agree, but still trying to figure out what impact that has on the broader eco system if USDT ends up being worthless starting now. How exactly will it impact the BTC price?
70% of btc volume is tether. Apparently the dollar exit points in regulated markets are rather narrow. So it could be rather catastrophic if either the market loses confidence in Tether or subsequent Us enforcement action shuts them down or makes Tether untouchable to various exchanges.
That's interesting, I didn't know that, thx! Will look it up a bit more.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#504Earlier quoted context omitted.
Can you summarize the dynamics/phenomena that those smartcontracts in DAI exploit to maintain stable value? What stops it from gaining -- or, more importantly, losing -- value? I couldn't tell from the link.
There are a few different mechanisms. I might be missing some, but here are the ones I know about. * The interest owed on loaned DAI (called a stability fee) changes depending on the market price. So if DAI goes too high, the stability fee increases which makes getting a DAI loan less attractive. If the market price goes too low, the stability fee drops. If it drops to 0, this would mean interest free collateralized…
Thanks, I appreciate the overview!
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#505Earlier quoted context omitted.
Why does USDC and USDT need to exist for this? What’s the benefit of not just having USD in your Coinbase/bitfinex acc if they’re meant to be pegged anyway?
Because many exchanges are in no way capable of holding a banking relationship with a legitimate bank that transacts in USD. edit: Perhaps that was overly snarky - the issue is that the US requires legitmate banks to take certain efforts to identify their customers (KYC), and prevent money laundering (AML). Meatspace banks aren't perfect in this regard either, but many crypto exchanges are either unable or unwilling…
No way interested and running an equivalent business with much less overhead and faster growing customer interest with higher returns, has nothing to do with crime or incompetence or imperfection
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#506I've been following Tether for quite a long time. I have no absolute proof it is a scam but the writing is on the wall. Here are some facts. - The current Market Cap of USDT is 34 Billion Dollars. It was 4B this time last year. Since the value is pegged this means there has been an influx of cash of 30 B into this shady company in the last year alone. Who invested this money? We have no idea since Tether doesn't disc…
> Personally I won't touch any crypto with a 10 foot pole
if you dont mind explaining to a relative newbie - how does any of this affect Bitcoin? it clearly has had some effect, but I just dont understand the causal chain.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#507I've been following Tether for quite a long time. I have no absolute proof it is a scam but the writing is on the wall. Here are some facts. - The current Market Cap of USDT is 34 Billion Dollars. It was 4B this time last year. Since the value is pegged this means there has been an influx of cash of 30 B into this shady company in the last year alone. Who invested this money? We have no idea since Tether doesn't disc…
In addition to all of this they claim to bank in the Bahamas. Bahamas discloses total banked assets and the amount of Tether issued far outpaces the rate at which the whole nation of the Bahamas' assets have been increasing.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#508Earlier quoted context omitted.
>18.5M of bitcoin has already been mined of the maximum 21M. So the amount of remaining future inflation from increased supply negligible. That the remaining 2M will be mined asymptotically over many years is not important except for purposes of incentivizing miners to run transactions.
It's not that negligible. At current reward of 6.25BTC, that means that the rate at which new BTC are being minted, as a percentage of total BTC supply, is about 3 times the (admittedly unusually low) current US inflation rate. You're right, though, it will become negligible at some point in the not-too-distant future. I think, though, that that may not be all that relevant. The arguments about BTC and money printing…
That's mostly fair, but worth noting that insofar as Bitcoin is mined on a schedule the inflation can be priced into the current price, so it's less deceptive than when the government suddenly prints a ton of bills and whoever was unlucky enough to be cash flush at the time takes a big haircut in purchasing power.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#509I've been following Tether for quite a long time. I have no absolute proof it is a scam but the writing is on the wall. Here are some facts. - The current Market Cap of USDT is 34 Billion Dollars. It was 4B this time last year. Since the value is pegged this means there has been an influx of cash of 30 B into this shady company in the last year alone. Who invested this money? We have no idea since Tether doesn't disc…
Backed by cash in a bank account doesn't mean that much. As you probably know any bank will take deposits and use them for loans.
Strangely USDT sells at a premium to USDC (audited) for years now.
My guess is it will slowly be replaced by an audited stable token if the market wants that.
Re: Bitfinex and Tether required to end all trading activity with New Yorkers
#510Earlier quoted context omitted.
a significant amount of cross-border trade (yes, actual goods transported in meatspace) is conducted in USDT for many years now.
I still am waiting for a source on this, unless the implication is that those meat-space trades are all illegal / ML and therefore not tracked....
Casinos and CFD buck shops love it. Typically only pay 0.003% vs 0.02-0.08% charged by VISA/MC card processors.