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I agree that USDT is fishy and it may be behind a large percentage of the gains in BTC and the other coins. However, there is also another possible explanation
by Tepix 6y ago
I agree that USDT is fishy and it may be behind a large percentage of the gains in BTC and the other coins.
However, there is also another possible explanation. When investors want to buy BTC they first to go Binance and ask for USDT in exchange for USD. Binance creates new USDT for them. Then they use the USDT to buy BTC (reverse causality). Just saying it's possible, but I believe Jacob Oracle to be right.
- PragmaticPulp 6y ago> When investors want to buy BTC they first to go Binance and ask for USDT in exchange for USD. Binance creates new USDT for them. Then they use the USDT to buy BTC (reverse causality). But why sell them USDT first and then sell them BTC in exchange for the USDT? Why not just sell them BTC directly? That's the issue.
- qqii 6y agoThe liquidity in BTCUSDT on binance is much higher so you're less likely to encounter slippage. You have to also remeber non US customers that use exchanges, for them it makes a lot of sense to exchange their native currency to USDT.
- triangleman 6y agoCan binance "create new USDT" or do they need to ask Tether to create it for them, exchanging USD?
- Tepix 6y agoDon't they share the same owners?