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The market cap of Tether is $21,807,025,291 according to coinmarketcap. Wouldn't the rush to trade all those tokens for something else push up the price of BTC?
by wan23 6y ago
The market cap of Tether is $21,807,025,291 according to coinmarketcap. Wouldn't the rush to trade all those tokens for something else push up the price of BTC?
- webinvest 6y agoThey could just swap the Tether for some other stablecoin that tracks the US dollar. There’s quite a few of them now. In that case, nothing happens to the price of Bitcoin.
- webinvest 6y agoUSDC, USDJ, DAI, PAX, BUSD, GUSD are 6 alternatives to USDT. There are apparently also half a dozen other USD stable coins.
- mamon 6y agoYes, and that's exactly what's happening right now, that's why Bitcoin price rose from 10k to 32k USD since September. Music is going to stop soon, and people are desperately looking for chairs to sit on.
- randomopining 6y agoTether's market cap has increased a ton in the past few months. BTC's market cap is like over 600 billion... Huge institutional accounts are taking their coins off exchanges and putting into cold storage. How does that go along with what you're saying?
- deleted 6y ago[deleted]
- webinvest 6y agoIn my opinion, that is not why Bitcoin’s price rose last month but I do not wish to share all that I know and give my hand away (for free). Many investment managers, who previously only flirted with cryptocurrencies, have started making rather high price predictions to their followers or investors. Most hold a 1% to 5% of their portfolio in bitcoin or other cryptocurrencies as a hedge but not as a primary bet. If I remember correctly, a 1% position in Bitcoin in 2017 combined with a 99% position in the S&P500 would’ve doubled the performance of a 100% S&P500 portfolio. Something like a 14% return vs a 28% return. (Then in 2018 if you didn’t rebalance your portfolio, it would’ve dropped down quite a bit.)
- webinvest 6y agoDid someone downvoting me because I disagree with you that bitcoin will go down to 1000 USD? Alright, if you’re bearish and you think it will go down, put your money on it! Buy put options, sell bitcoin futures, or short bitcoin. Any of it works. Many cryptocurrency exchanges let you short against a USD stablecoin, many brokerages let you sell futures, and half a dozen brokerages let you buy put options (or sell call options). But don’t put any more money on your bet than you’re willing to lose! Heck I’ll even give you an offer, if you want to let me know what your position is, I’ll take the other side! Put your money where your mouth is.
- qeternity 6y agoThere is an interesting doomsday arb that I have been toying with (fully believing that USDT is 90% of the alpha in BTC). The trade here is to be long exchanges that are USDT backed and short exchanges that are USD backed. This ultimately leaves you with a net short of USDT vs USD but it's very different than just being short USDTUSD on an exchange because those very exchanges won't be solvent if this unravels. So basically if the world doesn't end, you're mostly hedged (you have have manageable spread risk between the two exchanges) and if it implodes, you should see prices on the USDT exchanges skyrocket as people buy crypto to send elsewhere where they will immediately sell for fiat. The result is that BTCUSDT soars and BTCUSD plummets. Now, you'll never get paid on your BTCUSDT length but you will get paid on the short leg in your legitimate USD exchange At the end of the day there are better ways to make money in life though. But the trader in me will probably put a few quid to work here.