I'm getting real sick of repeatedly hearing people call increases in the Bitcoin price "bubbles".
Are pixie fairies behind Bitcoin's latest bubble?
11–20 of 115 posts
Re: Are pixie fairies behind Bitcoin's latest bubble?
#12I don't really get it (as always if tether is involved). If someone is printing tether to buy bitcoin, then who is selling bitcoin for tether and keeps the tether? I mean, if I had substantial bitcoin, I'd not sell it for tether. Maybe I'd use tether as some intermediate currency, but in the end I'd either buy stocks or real estate or yachts. Or I would keep the BTC. But I would never sell BTC and keep tether. Who do…
I have the same question. The only answer I can think of, is people that want to get out of Bitcoin but aren’t able to sell for real USD because of AML / tax purposes. Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. It still doesn’t really explain who is holding almost $20 billion of Tether though.
> Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally.
I don't get this part. What can you buy using tether, even if it is worth only $0.70? (Well, obviously you can buy bitcoin but this doesnt make any sense to buy the bitcoin back that you just sold. What else can you buy?)
Re: Are pixie fairies behind Bitcoin's latest bubble?
#13I don't really get it (as always if tether is involved). If someone is printing tether to buy bitcoin, then who is selling bitcoin for tether and keeps the tether? I mean, if I had substantial bitcoin, I'd not sell it for tether. Maybe I'd use tether as some intermediate currency, but in the end I'd either buy stocks or real estate or yachts. Or I would keep the BTC. But I would never sell BTC and keep tether. Who do…
I have the same question. The only answer I can think of, is people that want to get out of Bitcoin but aren’t able to sell for real USD because of AML / tax purposes. Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. It still doesn’t really explain who is holding almost $20 billion of Tether though.
Tether's biggest holders presumably are people with cash balances at exchanges without us dollar banking. At such exchanges the account will show USD not tether.
Re: Are pixie fairies behind Bitcoin's latest bubble?
#14IMHO, one of the issues with BitCoin is the prophecy that bitcoin will explode. It makes people engage in FOMO even worse than other investments because many people 'know' BitCoin will go to the moon and they are anticipating the hockey stick. It also makes people less skeptical of bubbles because it's expected. (disclaimer I own some bitcoin)
Re: Are pixie fairies behind Bitcoin's latest bubble?
#15Earlier quoted context omitted.
Print tether, buy bitcoin, sell bitcoin for real money. Day traders use tether to slip in and out of positions in a volatile market. Unregulated exchanges use tethers in place of real dollars.
> Print tether, buy bitcoin, sell bitcoin for real money. But to buy bitcoin for tether, you first need someone to sell bitcoin for tether. And this guy then has tether. What is he going to do with the tether? > Day traders use tether to slip in and out of positions in a volatile market. Unregulated exchanges use tethers in place of real dollars. But day traders close their positions at the end of the day (or at leas…
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Re: Are pixie fairies behind Bitcoin's latest bubble?
#16Earlier quoted context omitted.
I have the same question. The only answer I can think of, is people that want to get out of Bitcoin but aren’t able to sell for real USD because of AML / tax purposes. Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. It still doesn’t really explain who is holding almost $20 billion of Tether though.
> Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. I don't get this part. What can you buy using tether, even if it is worth only $0.70? (Well, obviously you can buy bitcoin but this doesnt make any sense to buy the bitcoin back that you just sold. What else can you buy?)
You can trade tether for other crypto in some exchanges.
Re: Are pixie fairies behind Bitcoin's latest bubble?
#17I don't really get it (as always if tether is involved). If someone is printing tether to buy bitcoin, then who is selling bitcoin for tether and keeps the tether? I mean, if I had substantial bitcoin, I'd not sell it for tether. Maybe I'd use tether as some intermediate currency, but in the end I'd either buy stocks or real estate or yachts. Or I would keep the BTC. But I would never sell BTC and keep tether. Who do…
I have the same question. The only answer I can think of, is people that want to get out of Bitcoin but aren’t able to sell for real USD because of AML / tax purposes. Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. It still doesn’t really explain who is holding almost $20 billion of Tether though.
One large use for Tether is transferring value either for abitrage or to buy assets on another exchange not available on your current exchange. Sending real USD via the banking system could take weeks whereas sending Tether will take minutes. Also if Tether is trading below $1, Tether (the company) could buy them back and burn them for profit, assuming of course that each token is backed by one real USD.
Re: Are pixie fairies behind Bitcoin's latest bubble?
#18I don't really get it (as always if tether is involved). If someone is printing tether to buy bitcoin, then who is selling bitcoin for tether and keeps the tether? I mean, if I had substantial bitcoin, I'd not sell it for tether. Maybe I'd use tether as some intermediate currency, but in the end I'd either buy stocks or real estate or yachts. Or I would keep the BTC. But I would never sell BTC and keep tether. Who do…
I have the same question. The only answer I can think of, is people that want to get out of Bitcoin but aren’t able to sell for real USD because of AML / tax purposes. Even if the tether is only worth $0.70 it’s still a better deal for some people who can’t exit their BTC position legally. It still doesn’t really explain who is holding almost $20 billion of Tether though.
I've been doing some small-scale arbitrage trading in Uniswap and other Defi exchanges. As part of that I hold a fair bit of Tether, USDC and other stable coins.
The reason being is that I want to keep my capital pegged to the dollar, but need something that's native to the Ethereum blockchain. If there's a trading opportunity, I need the ability to swap Tether for [X] token in a single blockchain transaction. There's no time to route actual dollar deposits from a real bank.
Considering that there's something like $13 billion locked in all the various defi protocols, that's a lot of potential demand for stable coins.
Re: Are pixie fairies behind Bitcoin's latest bubble?
#19I'd say paypal[0]. [0]: https://newsroom.paypal-corp.com/2020-10-21-PayPal-Launches-...
That's heavily covered in this article.
Re: Are pixie fairies behind Bitcoin's latest bubble?
#20> And no tethers, to anyone’s knowledge, have ever been redeemed—except for when Tether burned 500 million tethers in October 2018, following the seizure of $850 million from its payment processor Crypto Capital.
They can be redeemed on https://tether.to but the minimum is 100K$ if I recall correctly.