Are pixie fairies behind Bitcoin's latest bubble?

Post by howlgarnish » Mon, Nov 23, 2020, 2:32 AM UTC

rabf wrote: post #24

howlgarnish wrote: post #21

Earlier quoted context omitted.

But they are not backed by real USD, and Tether themselves have admitted as much: their FAQ now states simply that it's backed up by "Tether's reserves", which apparently consist of other cryptocurrencies.

Please link your sources, their reserves as I understand may in some part consist of unspecified collateral, even if they are crypto which I seriously doubt due to its volatility the fact remains that Tether is trusted enough to be supported by the majority of major exchanges. The imminent demise of tether has been predicted for many years now. You can short tether at Kraken or choose to use one of the many other USD…

Post by paulgb » Mon, Nov 23, 2020, 2:36 AM UTC

rabf wrote: post #24

howlgarnish wrote: post #21

Earlier quoted context omitted.

But they are not backed by real USD, and Tether themselves have admitted as much: their FAQ now states simply that it's backed up by "Tether's reserves", which apparently consist of other cryptocurrencies.

Please link your sources, their reserves as I understand may in some part consist of unspecified collateral, even if they are crypto which I seriously doubt due to its volatility the fact remains that Tether is trusted enough to be supported by the majority of major exchanges. The imminent demise of tether has been predicted for many years now. You can short tether at Kraken or choose to use one of the many other USD…

Post by wmf » Mon, Nov 23, 2020, 2:45 AM UTC

qeternity wrote: post #38

dcolkitt wrote: post #18

Earlier quoted context omitted.

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'…

It's likely that most/all of that stablecoin was amassed by selling other crypto, which is zero sum. It's extremely unlikely that people took fiat currencies, and bought USDT directly from Tether, which is what they claim is happening. No sane person would hold USDT over USD.

Post by dannyw » Mon, Nov 23, 2020, 2:49 AM UTC

arcticbull wrote: post #34

seppel wrote: post #2

I 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…

Here's a study that performs analysis showing that tether prints the coins and someone at bitfinex uses them to buy BTC at optimal points to support it's price. https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.12903

Post by wmf » Mon, Nov 23, 2020, 2:51 AM UTC

mantap wrote: post #37

Nursie wrote: post #29

Earlier quoted context omitted.

The point it it's not supposed to be. You know, because people wanted to opt out of that sort of system, where governments can manipulate money supply, into a peer-to-peer system that was free of manipulation and that sort of money printing? Instead they've opted into a system where a small group operate the printer for their own ends, with no oversight.

Tether is meant to be pegged to the dollar. It is supposed to be printed in high quantities if high quantities of tethers are necessary to maintain the peg. Otherwise the peg would break and one tether would be worth more than one dollar. Am I just being thick? It seems like the article has cause and effect the wrong way around. Demand for bitcoin would be expected to drive creation of tethers not the other way aroun…