4 ms·

>magical fountain of fake dollars The problem though is that if ether really were a "magical fountain of fake dollars" that would be reflected somewhere in the

>magical fountain of fake dollars The problem though is that if ether really were a "magical fountain of fake dollars" that would be reflected somewhere in the market price of tethers. Look at the price charts for tether->USD it's pretty nominally 1:1 https://cryptowat.ch/markets/kraken/usdt/usd https://cryptowat.ch/markets/kraken/usdt/usd The most contrarian one could argue is that people who sold bitcoin for fraudulent tethers haven't tried to withdrawal them /at all/ and therefore the tetherUSD liquidity hasn't been tested.

ufo 8y ago
One problem with the market price for tethers is that it is actually very hard to sell them for USD. For example, Bitfinex does not allow USD withdrawals, only Bitcoin withdrawals.
- 456hdsaq234g 8y ago
  not too hard. kraken and bittrex both do USD/USDT pairs (which, at 1.0 is a good metric of USDT health)
  - andrewla 8y ago
    True for Kraken (although their USD withdrawal policies are very restrictive, so not a huge improvement over getting your money from Bitfinex). Bittrex has a public pair between Tether and "True USD" [1], but their fiat USD market is not yet available to the public, and I don't know where we can find pricing data for the non-public market. [1] https://bittrex.com/Market/Index?MarketName=USDT-TUSD https://bittrex.com/Market/Index?MarketName=USDT-TUSD
    - polynomial 8y ago
      > although their USD withdrawal policies are very restrictive What is "very restrictive"? Cap on max amount for a given period?
- DINKDINK 8y ago
  >it is actually very hard to sell [tether] for USD Kraken offers a USDTUSD pair. How is that hard at all? https://blog.kraken.com/post/206/kraken-announces-support-for-crypto-dollar/ https://blog.kraken.com/post/206/kraken-announces-support-fo...
  - makomk 8y ago
    Very little trading volume, and I'm not sure how easy it is to withdraw USD from them either. There's generally a lot more volume and market depth available for trading Tether to Bitcoin and that to USD. Also, for some curious reason, during most of the time the Bitcoin price was going through the roof that Bitcoin was actually worth more USD than it was USDT - the effective exchange rate via this route valued Tether at a small but very noticable premium to its face value.
- nootropicat 8y ago
  >For example, Bitfinex does not allow USD withdrawals Not true, bitfinex reenabled usd withdrawals in November.
JackCh 8y ago
> "The most contrarian one could argue is that people who sold bitcoin for fraudulent tethers haven't tried to withdrawal them /at all/" Or they're just matched by the number of people with 'legitimate' tether who haven't withdrawn?

ufo 8y ago

One problem with the market price for tethers is that it is actually very hard to sell them for USD. For example, Bitfinex does not allow USD withdrawals, only Bitcoin withdrawals.

456hdsaq234g 8y ago
not too hard. kraken and bittrex both do USD/USDT pairs (which, at 1.0 is a good metric of USDT health)
- andrewla 8y ago
  True for Kraken (although their USD withdrawal policies are very restrictive, so not a huge improvement over getting your money from Bitfinex). Bittrex has a public pair between Tether and "True USD" [1], but their fiat USD market is not yet available to the public, and I don't know where we can find pricing data for the non-public market. [1] https://bittrex.com/Market/Index?MarketName=USDT-TUSD https://bittrex.com/Market/Index?MarketName=USDT-TUSD
  - polynomial 8y ago
    > although their USD withdrawal policies are very restrictive What is "very restrictive"? Cap on max amount for a given period?
DINKDINK 8y ago
>it is actually very hard to sell [tether] for USD Kraken offers a USDTUSD pair. How is that hard at all? https://blog.kraken.com/post/206/kraken-announces-support-for-crypto-dollar/ https://blog.kraken.com/post/206/kraken-announces-support-fo...
- makomk 8y ago
  Very little trading volume, and I'm not sure how easy it is to withdraw USD from them either. There's generally a lot more volume and market depth available for trading Tether to Bitcoin and that to USD. Also, for some curious reason, during most of the time the Bitcoin price was going through the roof that Bitcoin was actually worth more USD than it was USDT - the effective exchange rate via this route valued Tether at a small but very noticable premium to its face value.
nootropicat 8y ago
>For example, Bitfinex does not allow USD withdrawals Not true, bitfinex reenabled usd withdrawals in November.

JackCh 8y ago

> "The most contrarian one could argue is that people who sold bitcoin for fraudulent tethers haven't tried to withdrawal them /at all/" Or they're just matched by the number of people with 'legitimate' tether who haven't withdrawn?