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Plot tether market cap against BTC price. They appear to print USDT with no oversight. I fail to see how this is sustainable.

by itodd 6y ago

alainchabat 6y ago
can you explain me the link between USDT and BTC ?
- nicolas_ 6y ago
  The short version [0] and the long one [1] [0] https://kenkarlo.com/articles/the-scamming-of-tether-on-bitfinex-exchange https://kenkarlo.com/articles/the-scamming-of-tether-on-bitf... [1] https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/ https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/
  - deleted 6y ago
    [deleted]
- itodd 6y ago
  USDT is another "cryptocurrency". I put that in quotes as they can print it at their leisure. They claim to be backed by USD but have never been audited. The market cap grows by billions a month. BTC and USDT is a common trading pair on crypto exchanges. As a result, those behind USDT can print it and buy BTC to manipulate the price. Don't get me started on exchanges allowing you to trade with yourself. This field is tainted with shady practices.
  - deleted 6y ago
    [deleted]
- mekster 6y ago
  How hard? People are buying and selling tons of BTC with USDT and if it ends up being a fractional reserve and has been printing billions with nothing backing it up, how much of the BTC price might've come out of thin air?
nicolas_ 6y ago
Exactly! It's not sustainable at all and the downfall of Bitfinex/Tether will be a very big one for the cryptocurrency space.
wavepruner 6y ago
Tether is backed 1:1 with USD in traditional bank accounts. Some of it may still be seized and held by the US government, not sure if that's been resolved yet. USDT also trades freely on open markets against USD. If USDT was being printed without USD backing then those markets would decouple.
- itodd 6y ago
  [Citation needed]
  - wavepruner 6y ago
    It doesn't take much effort to verify these claims. But it's not worth my time digging it up for you. If you don't want to believe it, then don't. Doesn't make a difference to me.
    - itodd 6y ago
      > It doesn't take much effort to verify these claims. Please verify your first claim and I'll admit I was wrong.

Plot tether market cap against BTC price. They appear to print USDT with no oversight. I fail to see how this is sustainable.

by itodd 6y ago

Plot tether market cap against BTC price. They appear to print USDT with no oversight. I fail to see how this is sustainable.

alainchabat 6y ago

can you explain me the link between USDT and BTC ?

nicolas_ 6y ago
The short version [0] and the long one [1] [0] https://kenkarlo.com/articles/the-scamming-of-tether-on-bitfinex-exchange https://kenkarlo.com/articles/the-scamming-of-tether-on-bitf... [1] https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/ https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/
- deleted 6y ago
  [deleted]
itodd 6y ago
USDT is another "cryptocurrency". I put that in quotes as they can print it at their leisure. They claim to be backed by USD but have never been audited. The market cap grows by billions a month. BTC and USDT is a common trading pair on crypto exchanges. As a result, those behind USDT can print it and buy BTC to manipulate the price. Don't get me started on exchanges allowing you to trade with yourself. This field is tainted with shady practices.
- deleted 6y ago
  [deleted]
mekster 6y ago
How hard? People are buying and selling tons of BTC with USDT and if it ends up being a fractional reserve and has been printing billions with nothing backing it up, how much of the BTC price might've come out of thin air?

nicolas_ 6y ago

Exactly! It's not sustainable at all and the downfall of Bitfinex/Tether will be a very big one for the cryptocurrency space.

wavepruner 6y ago

Tether is backed 1:1 with USD in traditional bank accounts. Some of it may still be seized and held by the US government, not sure if that's been resolved yet. USDT also trades freely on open markets against USD. If USDT was being printed without USD backing then those markets would decouple.

itodd 6y ago
[Citation needed]
- wavepruner 6y ago
  It doesn't take much effort to verify these claims. But it's not worth my time digging it up for you. If you don't want to believe it, then don't. Doesn't make a difference to me.
  - itodd 6y ago
    > It doesn't take much effort to verify these claims. Please verify your first claim and I'll admit I was wrong.