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> Read the post, man, very first paragraph: I've read it a few times now, still can't find where they say they specifically created tether (the system) for thi
by askmike 9y ago
> Read the post, man, very first paragraph:
I've read it a few times now, still can't find where they say they specifically created tether (the system) for this exact purpose. Keep in mind that the issuance of tether is not the creation of the complete tether blockchain/system (they are issuing new tether around the clock).
> That's true, except you probably have never tried to actually execute that kind of arbitrage before. I have, so let me tell you the problem tether solves: speed.
You are right, I have never tried arbing through the banking system. I am doing small/mid scale arbing in cryptomarkets, however I stay away from anything that touches any bank / FIAT.
Though my point is that: yes arbing through banks is slow, inefficient and very dangerous. People will do it nonetheless because of the margins you can make. The exchange does not care how hard it is or how people do it, just that there is some guy somewhere (potentially flying around with suitcases of cash) who is doing it.
So yes I 100% agree with:
> That is an enormous benefit to arbitrageurs equalizing prices, and inter-exchange liquidity.
But bfx only cares about the latter, not really about the people doing it.
- darawk 9y ago> I've read it a few times now, still can't find where they say they specifically created tether (the system) for this exact purpose. Keep in mind that the issuance of tether is not the creation of the complete tether blockchain/system (they are issuing new tether around the clock). > Bitfinex was cut off from the US financial system, which makes it impossible for them to clear USD-denominated wires...Their solution: issue a cryptocurrency which is claimed to be 100% backed by USD Right there. patios11 claims that Bitfinex's "solution" to their wire problems was issuing Tether. That is demonstrably false, because Tether predates Bitfinex's wire issues by more than a year.
- askmike 9y agoIf it is raining outside and I take an umbrella with me, I can say it's a solution to the rain. That doesn't say anything about whether I bought the umbrella specifically for today and if I had it longer than today I am lying...
- darawk 9y ago"Their solution: issue a cryptocurrency" implies they issued Tether to solve their wire issues. This is false. They issued it long before.
- empath75 9y agoDo you think that bitfinex didn't know they'd potentially have wire problems before being officially cut off?
- darawk 9y agoI don't think they knew 1.5 years before.
- trowaybloway 9y agoI have no idea really but from the discussion I get the impression that one side assumes some amount of Tether could be issued at will, more or less, whereas the other seems to think to issue means to invent the ... whatever that even is.
- sethev 9y agoLots of people use git as a solution to their source control problem who only started writing code after it was invented.