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That's an interesting view, what makes you say that? Tether's market cap is about $10b now and it's daily transaction volume regularly exceeds that of BTC. It
by raesene9 6y ago
That's an interesting view, what makes you say that? Tether's market cap is about $10b now and it's daily transaction volume regularly exceeds that of BTC.
It would seem likely that if that volume left the market it would have a significant impact on the cost of other coins, especially if they are not 1:1 backed.
- martinko 6y agoTether is just a vehicle for transferring offshore USD between third parties. It does not underpin the value of bitcoin, it is more of a parallel system to bitcoin for transferring USD.
- raesene9 6y agoyou're assuming that Tether is not just printing Tether's out of nothing of course :) As they have never had an audit and have already admitted to not being 1:1 backed, that's not necessarily an assumption that'll play out well.
- martinko 6y agoEven if they are (having spoken to the cfo and ceo personally, i dont hink they are), this affects tether holders, not btc holders.
- raesene9 6y agoerr it's been publicly admitted by Tether in documentation submitted to the NY courts hearing their case against the NYAG that they're not 1:1 backed. From https://bitcoinmagazine.com/articles/holders-are-not-at-risk-bitfinex-lawyer-responds-to-ny-attorney-general https://bitcoinmagazine.com/articles/holders-are-not-at-risk... "Hoegner admits that Tether is operating under a roughly 74 percent reserve"
- martinko 6y agoThats two different things. They are backed by loans to bitfinex, like your money in the bank is backed by mortgages etc. I am not defending this, I think it is a major fuck up (one of many by bitfinex), but again, I do not think they are insolvent and that they will not be able to cover tether liabilities.