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If people are selling Tether to buy BTC, the price of Tether should decline while the price of BTC should increase. What actually happened is the price of Teth

If people are selling Tether to buy BTC, the price of Tether should decline while the price of BTC should increase. What actually happened is the price of Tether dropped < 1% and the price of BTC reverted to where it was a week ago.

henryfjordan 8y ago
My understanding is that the existence of Tether provides liquidity and confidence in BTC (especially the ability to sell quickly). If Tether takes a big confidence hit that might affect BTC strongly.
grey-area 8y ago
Are you sure the price of tether is accurate? Are you really sure? It appears to be defying gravity while the backer is accused of fraud and doesn't have funds to back it. These exchanges are unregulated and unaudited, the movements in price are inexplicable, and the simplest explanation is fraud.
- panarky 8y ago
  > Are you sure the price of tether is accurate? The price is accurate in that I can sell Tether and buy Bitcoin or Ethereum or Ripple, etc. at the market price. The fact that a counterparty is willing to buy Tether, in large quantities, in exchange for Bitcoin, tells me that the market price is accurate.
  - grey-area 8y ago
    Have you bought large quantities or are you relying on what exchanges say? Are you sure that that large quantities are not wash trades? I’d be very wary. https://modernconsensus.com/cryptocurrencies/tether/bitforex-coinmarket-cap-bitcoin-tether/ https://modernconsensus.com/cryptocurrencies/tether/bitforex...
    - panarky 8y ago
      Of course you can't trust what exchanges say. But if there were widespread problems selling Tether to buy Bitcoin, and withdrawing Bitcoin from the exchange, then we'd hear about it and there'd be a run on the exchange.
  - AJ007 8y ago
    Or the exchange doesn’t have all of the Bitcoin or Ethereum or Ripple, etc. claimed.
  - rightbyte 8y ago
    Have you done that personally? I.e tried to buy one token and selling for 0.95?
treis 8y ago
You can't really go from USDT -> USD directly. You go from USDT -> BTC and then BTC -> USD. So the drop in BTC is really people accepting fewer BTCs for the same USDT.
- xorcist 8y ago
  FWIW, you can trade USD/USDT at Kraken, which is a reputable exchange by most comparisons.

henryfjordan 8y ago

My understanding is that the existence of Tether provides liquidity and confidence in BTC (especially the ability to sell quickly). If Tether takes a big confidence hit that might affect BTC strongly.

grey-area 8y ago

Are you sure the price of tether is accurate? Are you really sure? It appears to be defying gravity while the backer is accused of fraud and doesn't have funds to back it. These exchanges are unregulated and unaudited, the movements in price are inexplicable, and the simplest explanation is fraud.

panarky 8y ago
> Are you sure the price of tether is accurate? The price is accurate in that I can sell Tether and buy Bitcoin or Ethereum or Ripple, etc. at the market price. The fact that a counterparty is willing to buy Tether, in large quantities, in exchange for Bitcoin, tells me that the market price is accurate.
- grey-area 8y ago
  Have you bought large quantities or are you relying on what exchanges say? Are you sure that that large quantities are not wash trades? I’d be very wary. https://modernconsensus.com/cryptocurrencies/tether/bitforex-coinmarket-cap-bitcoin-tether/ https://modernconsensus.com/cryptocurrencies/tether/bitforex...
  - panarky 8y ago
    Of course you can't trust what exchanges say. But if there were widespread problems selling Tether to buy Bitcoin, and withdrawing Bitcoin from the exchange, then we'd hear about it and there'd be a run on the exchange.
- AJ007 8y ago
  Or the exchange doesn’t have all of the Bitcoin or Ethereum or Ripple, etc. claimed.
- rightbyte 8y ago
  Have you done that personally? I.e tried to buy one token and selling for 0.95?

treis 8y ago

You can't really go from USDT -> USD directly. You go from USDT -> BTC and then BTC -> USD. So the drop in BTC is really people accepting fewer BTCs for the same USDT.

xorcist 8y ago
FWIW, you can trade USD/USDT at Kraken, which is a reputable exchange by most comparisons.