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> Holy Shit, are they just trying to print out tethers out of thin air right now to pump Bitcoin? That's the line I often see on Twitter / Reddit and usually g
by flashmob 9y ago
> Holy Shit, are they just trying to print out tethers out of thin air right now to pump Bitcoin?
That's the line I often see on Twitter / Reddit and usually gets a lot of upvotes, despite being irrational, with no proof to back it up.
As bitcoin falls, the demand for Tethers goes up. To keep Tethers pegged to, say, $1 USD, they need issue more to meet the demand, which would be a more rational explanation why more were issued.
- klipt 9y ago> As bitcoin falls, the demand for Tethers goes up. Or maybe people want USD, but the exchange forces them to go through Tether to get there. So there'll be a brief demand for Tethers, then a big selloff of Tether for USD.
- flashmob 9y agoYes, that's what I meant by "demand for tethers go up". Although at present, there are only two exchanges that offer Tethers/USD market (Kraken & Bitfinex). Eventually, majority of those holding Tether will probably get back in to crypto. Indeed, holding Tethers could be risky, especially if the peg brakes, there are no guarantees that it will always be stable.
- ActsJuvenile 9y agoThe problem people have with Tether is their promise of 1 USDT = 1 USD. Tether was kicked out of their HK and Taiwan banks, and now they are banking in Caribbean islands. They are supposedly holding $1.55 Billion USD cash in one of those banks to back USDT issued so far. My question is, have you seen a Caribbean bank? Most bank HQs over there look like a 7-Eleven, and banks are owned by local politicians or shady characters. Anyone who deposits more than $1 million in those banks is a fool.