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Your daily reminder that you can short Tether if you want. All these people writing these articles, and the freely moving market price hovers right around 1:1. Funny how when people are asked to bet, despite the fact that there's almost no risk of loss for shorting it, their convictions disappear.
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I'd be interested if you think there's anywhere I make a strong claim without appropriately strong evidence. There are a lot of strong claims, but I'm justifiably confident of them. Many of them are cited inline.
It is more about the general "conspiracy" tone of the article. It is like "OMG banks can create money, what a conspiracy" by some people who are surprised by the facts on how financial system works when they finally learn some basics. There is strong demand for any kind of vehicle which allows transferring value digitally outside of the traditional banking system. I don't think tether users trust tether because they…
Don't forget that another relevant use case is anonimized payments. Let's say you deal with weapons. A good crypto could help. Let's say you sell porn videos: in some cases, one wants to pay with crypto because they don't want their SO to find out.
Just like speculation: it's not always an ethical thing. I'm just saying it's a usecase (quite matter of factly / detached from emotion).
For me though, there's only cryptokitties <3
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Where can you sell Tether short in a market that's not controlled by these same unscrupulous manipulators? Shorting makes sense in regulated public markets with plenty of liquidity. Cryptocurrencies aren't like that.
Kraken trades USD/USDT directly and will let you short.
There is no wholly or even just meaningfully independent platform on which you can actually short Tether.
"Players in the crypto ecosystem will be shocked, shocked to know it got this bad, this quickly, but this has been an open secret for over a year." ---- I'm not entirely in agreement the crypto world will be shocked tether is insolvent. As long the the fiat gateways exist to exit the system with gains intact, most could care less about tether. It's musical chairs.
Your daily reminder that you can short Tether if you want. All these people writing these articles, and the freely moving market price hovers right around 1:1. Funny how when people are asked to bet, despite the fact that there's almost no risk of loss for shorting it, their convictions disappear.
This is a subplot of the Big Short, and cost several groups of the protagonists a lot of money: they were so right about their prediction regarding the housing market that e.g. the banks who had brokered their swaps might have gone under, which would have impeded their ability to get paid. (There are several variants of the same thing discussed; the book is marginally clearer than the movie about them.)
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Tether has gigantic red flags including not being able to actually exchange it for dollars even though it is pegged to dollars. It's so brazen it's hard to even believe it.
Fractional reserve banking has the same problem, yet provides a real, functional purpose for finance. Tether has a purpose - to be a savings account is not that purpose.
Hundreds of millions of people do this every day around the world without issue, because this is a solved problem.
Your daily reminder that you can short Tether if you want. All these people writing these articles, and the freely moving market price hovers right around 1:1. Funny how when people are asked to bet, despite the fact that there's almost no risk of loss for shorting it, their convictions disappear.
E.g. a time traveler might see tether go to $0 in the year 2025. But if he is stuck in the year 2019... shorting it in the short term is clearly a dumb idea. Betting that you can have a chair when the music stops is similarly dumb to to betting you can guess when the music stops altogether. Both fools know the music will stop eventually. Both will likely lose.
Earlier quoted context omitted.
Tether has gigantic red flags including not being able to actually exchange it for dollars even though it is pegged to dollars. It's so brazen it's hard to even believe it.
I'm not advocating for tether. But it is not a ponzi scheme. And I think that most of the users understand what tether is - they are not excepting returns, they also understand that it is unregulated vehicle where the backing can disappear any time if the issuers get into trouble. I would guess biggest use-case is moving fiat between exchanges without having compliance issues, which you would have with banks.