3 ms·

And why are the customers buying USDTs in such large volumes? Technically all cryptocurrencies are "fake money printed out of thin air", so that doesn't bother

• ufo 9y ago
  > And why are the customers buying USDTs in such large volumes? Tethers purchasing is currently unavailable for general consumers[1]. The only way for new customers to trade in Bitfinex is to purchase cryptocoins elsewhere and then transfer them to Bitfinex. Bitfinex claims that there are unnamed "institutional investors" that are purchasing all those tethers [2]. I find that hard to believe. Most likely, the vast majority of tethers in circulation are printed out of thin air and haven't been purchased by anyone. > Technically all cryptocurrencies are "fake money printed out of thin air" Assuming a perfectly competitive environment, the bitcoin mining rewards should converge to the cost of mining, which leaves a smaller profit. On the other hand, Tethers are unilaterally printed by Bitfinex, with no mining cost. All the printed tethers go straight towards purchasing Bitcoin and defrauding Bitfinex customers. > I just don't get the appeal of holding USDT. Bitfinex attracts speculators because they allow leveraged trading (including shorting), trade lots of different cryptocurrencies in addition to Bitcoin and have lax know your customer / anti-money-laundering requirements. But I agree with you -- I am baffled why any sane person would want to come anywhere near Bitfinex. -------- [1] https://wallet.tether.to/app/#!/signup https://wallet.tether.to/app/#!/signup [2] https://medium.com/@bitfinexed/https://medium.com/@bitfinexed/cb4ed5175092 https://medium.com/@bitfinexed/https://medium.com/@bitfinexe...