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Only against USDT. The USDT/BTC price will go through the roof, but what does that matter? USD price will also skyrocket relative to USDT. Anything is worth mo

Only against USDT. The USDT/BTC price will go through the roof, but what does that matter? USD price will also skyrocket relative to USDT. Anything is worth more than a USDT that's known to be a scam. But, that doesn't make everybody holding non-USDT rich, it just takes a couple billion off the table and puts it in the pocket of the folks running Tether/Bitfinex. The problem isn't so much what individual traders will do when Tether crashes or what that'll do to BTC. It's what Bitfinex/Tether have been doing with the Tethers they've been printing at a few hundred million per week. If we assume most miners sell most of their coins, and if we assume most of the Tethers printed over the past several weeks (well over a billion of them in just the past few weeks) have gone to buying Bitcoin, about half of miner output has been bought with counterfeit money over a long period of time. What happens when half of the upward price pressure disappears overnight, and miner output continues unchanged? I don't think it's alarmist to suggest BTC and much of the rest of the crypto market will drop 50% pretty rapidly. (I am long-term bullish on crypto. Short-term, I'm extremely bearish.) I've seen people make the argument that Tether only accounts for a small percentage of the market cap of BTC, and so if it fails it won't be a big deal. But, when that "small percentage" is able to buy half the new coins coming into circulation day in and day out, you can bet it's able to move the price, and it seems to be what's been propping up the price these past couple of weeks; trends and signals are downward, but every couple days Tether drops another $100 million USDT on the market and, miraculously, BTC gets a bounce and it stays above $10k. I'm not an expert, and I can't predict the future, but I've sold nearly all of my crypto, because this looks absolutely insane, to me. It looks like a blatant and insanely bold con, and I don't want to be one of their marks when they disappear with a few hundred million dollars worth of stolen Bitcoin purchased with money they printed out of thin air.

tehlike 9y ago
Market cap is only holders dream. It means nothing. People already have hard time liquidating anything more than 100k, i hear. The float is pretty low. And as you noted miraculously couple days after tether press prints money, bitcoin and most alts jump 10% magically. Combine that with people attributing hundreds or even billions of dollars of market cap to something that doesnt have any tangible use or doesnt even have a github repo, i am goddamn sure tether can and will bring down the whole market down. Technological adoption was the "news following the market" on bitcoins price rise. The real news will be when it explodes. Another thing is bitfinex=tether, so tether imploding means bitfinex becoming insolvent, which will also bring downward price pressure.
- lhl 9y ago
  This is dead easy to check and absolutely not true. BTC/USD 24hr volume on GDAX alone is $147M and you can liquidate $1M of BTC on GDAX right this second w/ less than 0.1% slippage. Why would you even post something (or hold an opinion) that's so easy to confirm/disprove if you simply know nothing about it? I find it constantly surprising by how low-information the posts on cryptocurrencies tend to be here on HN.
  - tehlike 9y ago
    Liquidating doesnt mean yoy can take the money out. Try doing that. Also the volume is mostly bot driven even on gdax. That is why the whole volume and marketcap is crazy.
    - lhl 9y ago
      GDAX has withdrawal limits of up to $25M/day, however if you're liquidating that much at once, you're better off OTC. GDAX USD accounts are only FDIC insured up to the standard $250K.
      - tehlike 9y ago
        Insurance is for the money staying in accounts. I guess my point is with this much manipulation and fraud, it is not hard to see market go down big time due to tether. Gdax volume is inflated aomewhat due to bitfinex' bot that keeps buying and selling/painting tape on gdax. We saw what happened previously when a large exchange becomes insolvent. Tether will lead to bitfinex being insolvent, or better will lead to government raid or something. I would also be careful about calling things low info. I have plenty invested in crypto, but unlike many i am not a mooner dreamer. Btc is trying really hard ti stay at its current price and relies on tether printing. I dont think this is hard to see...
  - deleted 9y ago
    [deleted]

tehlike 9y ago

Market cap is only holders dream. It means nothing. People already have hard time liquidating anything more than 100k, i hear. The float is pretty low. And as you noted miraculously couple days after tether press prints money, bitcoin and most alts jump 10% magically. Combine that with people attributing hundreds or even billions of dollars of market cap to something that doesnt have any tangible use or doesnt even have a github repo, i am goddamn sure tether can and will bring down the whole market down. Technological adoption was the "news following the market" on bitcoins price rise. The real news will be when it explodes. Another thing is bitfinex=tether, so tether imploding means bitfinex becoming insolvent, which will also bring downward price pressure.

lhl 9y ago
This is dead easy to check and absolutely not true. BTC/USD 24hr volume on GDAX alone is $147M and you can liquidate $1M of BTC on GDAX right this second w/ less than 0.1% slippage. Why would you even post something (or hold an opinion) that's so easy to confirm/disprove if you simply know nothing about it? I find it constantly surprising by how low-information the posts on cryptocurrencies tend to be here on HN.
- tehlike 9y ago
  Liquidating doesnt mean yoy can take the money out. Try doing that. Also the volume is mostly bot driven even on gdax. That is why the whole volume and marketcap is crazy.
  - lhl 9y ago
    GDAX has withdrawal limits of up to $25M/day, however if you're liquidating that much at once, you're better off OTC. GDAX USD accounts are only FDIC insured up to the standard $250K.
    - tehlike 9y ago
      Insurance is for the money staying in accounts. I guess my point is with this much manipulation and fraud, it is not hard to see market go down big time due to tether. Gdax volume is inflated aomewhat due to bitfinex' bot that keeps buying and selling/painting tape on gdax. We saw what happened previously when a large exchange becomes insolvent. Tether will lead to bitfinex being insolvent, or better will lead to government raid or something. I would also be careful about calling things low info. I have plenty invested in crypto, but unlike many i am not a mooner dreamer. Btc is trying really hard ti stay at its current price and relies on tether printing. I dont think this is hard to see...
- deleted 9y ago
  [deleted]