5 ms·

Since we're on the subject, how do people think the Tether situation will play out?

by chaostheory 6y ago

askmike 6y ago
That's a very different subject, I don't see any overlap
- chaostheory 6y ago
  Mt Gox was responsible for the first bitcoin bubble. Tether has been responsible for multiple bitcoin bubbles now, using their crypto that was supposedly backed by the USD 1 to 1. The rationale for pumping bitcoin is the same: to recoup stolen money. Look at the money inflow graph. Tether surpasses everything else https://coinlib.io/coin/BTC/Bitcoin https://coinlib.io/coin/BTC/Bitcoin
  - askmike 6y ago
    There have been many bubbles before Mt Gox and there have been many after. > Tether has been responsible for multiple bitcoin bubbles now No one in the space actually believes this.
    - chaostheory 6y ago
      > There have been many bubbles before Mt Gox and there have been many after. Before Mt Gox there were no giant bubbles. Post Mt Gox, all of the giant bubbles were most likely caused by Tether. > No one in the space actually believes this. That is not true.
- optimalsolver 6y ago
  In terms of losses, Tether will be to Mt. Gox what Little Boy was to a firecracker.
  - chaostheory 6y ago
    Any other predictions? Surprisingly, there still are very few people who are away of this ticking time bomb.
wmf 6y ago
Some agency orders a freeze on Tether which triggers a panic of USDT -> BTC -> USD trades, creating a situation where 1 BTC = ~200K USDT and 1 BTC = ~20K USD. I don't expect this to happen in 2021.
- kmeisthax 6y ago
  That's already happened, and has been continuously occurring since 2017 when Wells Fargo shut down their links to the traditional banking system. Tether continues to trade at the peg because people believe it to be pegged. The only way the Tether peg could possibly be realistic is if massive amounts of institutional investors were engaging in really unusual settlement procedures to buy into Tether. I've heard stories about Tether having it's investors operate accounts on it's behalf or something, which sounds incredibly farfetched compared to the more likely idea that they're just not bothering maintaining anything close to a reasonable reserve requirement for their peg. After all, nobody can really pull money out of Tether.
sekai 6y ago
It won't. People were screaming about Tether back in 2017, 4 years, still going strong. Keep in mind, they aren't the only stablecoin in the market now, so even less relevant to the crypto space.

Since we're on the subject, how do people think the Tether situation will play out?

askmike 6y ago

That's a very different subject, I don't see any overlap

chaostheory 6y ago
Mt Gox was responsible for the first bitcoin bubble. Tether has been responsible for multiple bitcoin bubbles now, using their crypto that was supposedly backed by the USD 1 to 1. The rationale for pumping bitcoin is the same: to recoup stolen money. Look at the money inflow graph. Tether surpasses everything else https://coinlib.io/coin/BTC/Bitcoin https://coinlib.io/coin/BTC/Bitcoin
- askmike 6y ago
  There have been many bubbles before Mt Gox and there have been many after. > Tether has been responsible for multiple bitcoin bubbles now No one in the space actually believes this.
  - chaostheory 6y ago
    > There have been many bubbles before Mt Gox and there have been many after. Before Mt Gox there were no giant bubbles. Post Mt Gox, all of the giant bubbles were most likely caused by Tether. > No one in the space actually believes this. That is not true.
optimalsolver 6y ago
In terms of losses, Tether will be to Mt. Gox what Little Boy was to a firecracker.
- chaostheory 6y ago
  Any other predictions? Surprisingly, there still are very few people who are away of this ticking time bomb.

wmf 6y ago

Some agency orders a freeze on Tether which triggers a panic of USDT -> BTC -> USD trades, creating a situation where 1 BTC = ~200K USDT and 1 BTC = ~20K USD. I don't expect this to happen in 2021.

kmeisthax 6y ago
That's already happened, and has been continuously occurring since 2017 when Wells Fargo shut down their links to the traditional banking system. Tether continues to trade at the peg because people believe it to be pegged. The only way the Tether peg could possibly be realistic is if massive amounts of institutional investors were engaging in really unusual settlement procedures to buy into Tether. I've heard stories about Tether having it's investors operate accounts on it's behalf or something, which sounds incredibly farfetched compared to the more likely idea that they're just not bothering maintaining anything close to a reasonable reserve requirement for their peg. After all, nobody can really pull money out of Tether.

sekai 6y ago

It won't. People were screaming about Tether back in 2017, 4 years, still going strong. Keep in mind, they aren't the only stablecoin in the market now, so even less relevant to the crypto space.