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Tether is 1/400 of the cryptocurrency market cap. Meaning "only" 1/400 of the money would be lost if Tether does an "exit scam" like Bitconnect did. Oh, and by

by mtgx 9y ago

Tether is 1/400 of the cryptocurrency market cap. Meaning "only" 1/400 of the money would be lost if Tether does an "exit scam" like Bitconnect did. Oh, and by the way, Bitconnect was larger than Tether. To put things in context, the MtGox heist was worth about 1/20 of the market. However, back then Bitcoin was pretty much the only cryptocurrency and it was still just a technological curiosity. If Bitcoin could be "hacked" at this level, then people didn't really have a choice than think that maybe this technology isn't all that great, and may actually disappear. I don't think the market would crash for 2 years straight again if $40 billion in cryptocurrency were stolen tomorrow. It would take a LOT to take down the whole market for good. Even if you had events such as world's governments uniting to ban all cryptocurrency exchanges, which is highly unlikely (see Belarus announcing to make crypto tax-free today), it would still make crash the market for 2-3 years, until people figure out how to get around those regulations with decentralized exchanges.

hendzen 9y ago
You are equating dollar inflows/outflows with market cap. They are not the same. Look at the order book on GDAX. How much bitcoin do you need to buy/sell to increase/decrease the market cap by 1 billion dollars? MUCH less than 1 billion dollars worth...
mancerayder 9y ago
Sure, but you're assuming they're going to stop printing Tethers. Also, Belarus? It ranks as one of the most corrupt countries in the world. Not exactly the first shining example that comes to mind of a leader in financial regulation.
ActsJuvenile 9y ago
You should look at daily volume: BTC daily trade volume = $14B Tethers sloshing around in market today = $1.6B Thus Tethers represent 14% of the market. If MtGox crash was due to a 5% heist, this 14% scam will wipe out Bitcoin and establish Ethereum as the new king. PS: What's the story behind your username?
- dialtone 9y ago
  Tethers today traded $3.8B, $1.6B is their market cap. https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ so it's even more unreal.
- tlrobinson 9y ago
  Why would Ethereum fare better than Bitcoin? Every exchange that uses Tether also trades ETH.

by mtgx 9y ago

hendzen 9y ago

You are equating dollar inflows/outflows with market cap. They are not the same. Look at the order book on GDAX. How much bitcoin do you need to buy/sell to increase/decrease the market cap by 1 billion dollars? MUCH less than 1 billion dollars worth...

mancerayder 9y ago

Sure, but you're assuming they're going to stop printing Tethers. Also, Belarus? It ranks as one of the most corrupt countries in the world. Not exactly the first shining example that comes to mind of a leader in financial regulation.

ActsJuvenile 9y ago

You should look at daily volume: BTC daily trade volume = $14B Tethers sloshing around in market today = $1.6B Thus Tethers represent 14% of the market. If MtGox crash was due to a 5% heist, this 14% scam will wipe out Bitcoin and establish Ethereum as the new king. PS: What's the story behind your username?

dialtone 9y ago
Tethers today traded $3.8B, $1.6B is their market cap. https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ so it's even more unreal.
tlrobinson 9y ago
Why would Ethereum fare better than Bitcoin? Every exchange that uses Tether also trades ETH.