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I would think that the orgs / people holding Tether would be the ones to suffer the most, not the holders of BTC. And who is holding the Tether that was exchan

I would think that the orgs / people holding Tether would be the ones to suffer the most, not the holders of BTC. And who is holding the Tether that was exchanged for BTC? Probably Bitfinex, right? So, if Tether does turn out to be not backed by USD, they would be left holding worthless Tether. The BTC is already transferred out and gone. I think this is much more realistic assessment on the risk to Bitcoin: > Julian Hosp, co-founder of cryptocurrency payment service TenX, has listed tether as one of four big risks, with a 10 per cent likelihood of a crash this year which could pull the market down by 15 per cent. So, 10% chance that Tether is a scam, and if so, it would hurt BTC (and probably other coins too) by 15%. That seems much more realistic to me.

djrogers 9y ago
> I would think that the orgs / people holding Tether would be the ones to suffer the most, not the holders of BTC They will suffer, but the ~$2.4B in tether value is tiny compared to the value of BTC that it's been driving/propping up. If tether dies BTC would only have to drop about 1% to take another $2B off the table. If it drops 10, 20, or 50% there will be blood. > > Julian Hosp, co-founder of cryptocurrency payment service TenX, has listed tether as one of four big risks, with a 10 per cent likelihood of a crash this year which could pull the market down by 15 per cent. So, 10% chance that Tether is a scam, and if so, it would hurt BTC (and probably other coins too) by 15%. That seems much more realistic to me. I'm not sure that I'd take the word of a crypto insider as gospel on the chances of a Tether crash... Unless he's seen the bank statements with the $2.4B USD in them, he doesn't have any authority there.
- curuinor 9y ago
  Given the thinness of every crypto market and the rampant wash trading, there's a real chance of something bigger than the magic the gathering exchange fiasco
- deleted 9y ago
  [deleted]
cstejerean 9y ago
Bitfinex is Tether, they are basically the same company. I wouldn’t worry about them getting screwed on this one, they are the ones doing the screwing. Most exchanges shouldn’t be holding Tether because the exchange itself isn’t supposed to be on the other side of the trade. Every time you buy BTC with Tether you are buying it from someone else. So someone is holding Tether, and when they realize it’s not real money they will start dumping it.

djrogers 9y ago

> I would think that the orgs / people holding Tether would be the ones to suffer the most, not the holders of BTC They will suffer, but the ~$2.4B in tether value is tiny compared to the value of BTC that it's been driving/propping up. If tether dies BTC would only have to drop about 1% to take another $2B off the table. If it drops 10, 20, or 50% there will be blood. > > Julian Hosp, co-founder of cryptocurrency payment service TenX, has listed tether as one of four big risks, with a 10 per cent likelihood of a crash this year which could pull the market down by 15 per cent. So, 10% chance that Tether is a scam, and if so, it would hurt BTC (and probably other coins too) by 15%. That seems much more realistic to me. I'm not sure that I'd take the word of a crypto insider as gospel on the chances of a Tether crash... Unless he's seen the bank statements with the $2.4B USD in them, he doesn't have any authority there.

curuinor 9y ago
Given the thinness of every crypto market and the rampant wash trading, there's a real chance of something bigger than the magic the gathering exchange fiasco
deleted 9y ago
[deleted]

cstejerean 9y ago

Bitfinex is Tether, they are basically the same company. I wouldn’t worry about them getting screwed on this one, they are the ones doing the screwing. Most exchanges shouldn’t be holding Tether because the exchange itself isn’t supposed to be on the other side of the trade. Every time you buy BTC with Tether you are buying it from someone else. So someone is holding Tether, and when they realize it’s not real money they will start dumping it.