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Are pixie fairies behind Bitcoin's latest bubble?

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Re: Are pixie fairies behind Bitcoin's latest bubble?

#51

Post by arcticbull »

dannyw wrote: post #47
arcticbull wrote: post #34

Earlier quoted context omitted.

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

This can be explained as whales/institutions telling BFX "I want $100M of BTC" and a human OTC trader at BFX executing it optimally.

Why on earth would a legitimate whale be dropping money into bitfinex and tether lol, they barely have banking relationships. They have at times literally not had access to withdrawals — because they were pretending not to be who they are and were caught by Wells Fargo. A few times if memory serves. You think a whale is dropping $2 billion dollars of new money into tether prints via bitfinex?! What kind of mad man would do that when they have access to Coinbase and Gemini, where they could actually get their money back out?

Remember this is newly printed tether which means net deposits of new actual usd, if you believe them - and of course I do not.

Re: Are pixie fairies behind Bitcoin's latest bubble?

#52

Post by rabf »

arcticbull wrote: post #35
rabf wrote: post #24

Earlier quoted context omitted.

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…

Never short crypto it's a rigged casino, first of all. Second, the fact tether is trusted and used by exchanges is more out of necessity than desire. They would die if they had to ask their so called customers to verify their identities and so both sides look the other way and pretend in a classic emperor has no clothes situation. I'm sure the tether based exchanges are squirming in their pants as tether prints anoth…

Kraken has many banking partners and do require KYC. A larger issue is that not everyone is in America but still require USD as is it is the most liquid exchange pair. I guess that this leads to many trusting USDT over American based tokenised dollars that are more subject to US courts. A better option could be DAI . though that is only backed by crypto assets thus far.

Re: Are pixie fairies behind Bitcoin's latest bubble?

#53

Post by rabf »

A point that opponents of Tether repeatedly ignore is how easy a source of profit it is as business idea. The reason I do not believe all the Tether conspiracy theorys is that there there is too much easy money to be made without breaking the law and all that entails.

For example buy back tether yourself whenever the market is spooked that you may not be legit due to internet fud or have your collateral invested in US bonds.

Re: Are pixie fairies behind Bitcoin's latest bubble?

#54

Post by wmf »

dannyw wrote: post #46
raziel2701 wrote: post #23

Earlier quoted context omitted.

My understanding is that tether is printed (by Tether the company) and used to buy btc at just a couple exchanges (one is bitfinex, I forget the others) who are in on it. This initial purchase drives btc-usdt up, arbitrage bots then buy btc-usd so that it matches btc-usdt. The media and people notice the price increase and jump into btc-usd because it's going up, narratives are created to justify why the price went u…

Bitfinex is one of the largest exchanges, and Tether is also used by many other exchanges like Binance. It's not implausible to think that there's $13B of inflows to BTC this year. This whole Tether speculation / hit piece is basically people thinking "It's implausible people want to buy bitcoin on the largest bitcoin exchanges".

You could have $13B of inflow to BTC with only $1B of Tethers because they should be reused. Who is holding them and why?

Re: Are pixie fairies behind Bitcoin's latest bubble?

#55

Post by 1996 »

arcticbull wrote: post #44
inquirerofsorts wrote: post #40

Earlier quoted context omitted.

Tether is literally a short on bitcoin that is quick and cheap to transact in, it is keeping the price down rather than up. There's only 21 million bitcoins, but there's infinite tether. People really need to take a step back from mindlessly repeating things and think about what that actually means. Go do a search of "tether site:news.ycombinator.com" to see how laughably wrong HN has been for the last 4 years on thi…

What conspiracy theories dude? We said it wasn't backed by dollars, lo and behold, $850 million or 30% of the entire backing amount at the time had been siezed by authorities for being the proceeds of money laundering. It was all held by CryptoCapital, give them a quick Google lol. We said it wasn't backed by dollars, they admitted it wasn't backed by dollars and instead crypto and swaps, and other ious. We said you…

Ah, articbull as usual.

So after the govt seizes almost one billion from tether, they are not fully backed anymore? Color me surprised!!

Re: Are pixie fairies behind Bitcoin's latest bubble?

#56

Post by wmf »

arcticbull wrote: post #51
dannyw wrote: post #47

Earlier quoted context omitted.

This can be explained as whales/institutions telling BFX "I want $100M of BTC" and a human OTC trader at BFX executing it optimally.

Why on earth would a legitimate whale be dropping money into bitfinex and tether lol, they barely have banking relationships. They have at times literally not had access to withdrawals — because they were pretending not to be who they are and were caught by Wells Fargo. A few times if memory serves. You think a whale is dropping $2 billion dollars of new money into tether prints via bitfinex?! What kind of mad man wo…

https://www.theblockcrypto.com/post/48857/former-head-of-cir...

Re: Are pixie fairies behind Bitcoin's latest bubble?

#57

Post by 35fbe7d3d5b9 »

marcell wrote: post #26

It's not really important to withdraw USDT directly into my bank account. I can simply move USDT to Binance, convert it to USDC, and then withdraw USDC using my Coinbase account. USDC and USDT trade at basically 1:1, as you can see here: https://www.binance.com/en/trade/USDC_USDT FUD around Tether (like this article) is noise.

If Tether is a scam, you're going to be hard pressed to find someone willing to sell 1:1. Like all things crypto, don't be the last one out the door.

Re: Are pixie fairies behind Bitcoin's latest bubble?

#58

Post by okokok___ »

FridgeSeal wrote: post #48
okokok___ wrote: post #11

I'm getting real sick of repeatedly hearing people call increases in the Bitcoin price "bubbles".

Well when it stops catastrophically collapsing after each major price rise, like...you know...a bubble, then we'll stop calling it that.

You mean like any other market? Or just this one?

Re: Are pixie fairies behind Bitcoin's latest bubble?

#59

Post by owenmarshall »

rabf wrote: post #53

A point that opponents of Tether repeatedly ignore is how easy a source of profit it is as business idea. The reason I do not believe all the Tether conspiracy theorys is that there there is too much easy money to be made without breaking the law and all that entails. For example buy back tether yourself whenever the market is spooked that you may not be legit due to internet fud or have your collateral invested in U…

This is only an easy source of profit if you know nothing about US anti-money laundering laws.

Re: Are pixie fairies behind Bitcoin's latest bubble?

#60

Post by FridgeSeal »

okokok___ wrote: post #58
FridgeSeal wrote: post #48

Earlier quoted context omitted.

Well when it stops catastrophically collapsing after each major price rise, like...you know...a bubble, then we'll stop calling it that.

You mean like any other market? Or just this one?

So is it a currency or a market?

Because if it's a currency, it way too useless and volatile compared to EUR/USD/AUD/CAD/GBP etc.

If it's a market (a la share market, commodities etc), then the volatility is fine, but what advantage does being a crypto-currency bring here? Because I'd rather invest in a normal company on the stock market instead of a crypto-currency, because at least with the former I am far, far less concerned about yet another exchange disappearing off the face of the earth or doing something illegal...

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