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The argument only provides support for the lows. Tether backing is not just dollar. They recursively use bitcoin as part of their reserve. Bitcoin price rises,
by tehlike 6y ago
The argument only provides support for the lows.
Tether backing is not just dollar. They recursively use bitcoin as part of their reserve.
Bitcoin price rises, and they print more usdt to buy more btc.
It's hard to say how much btc would drop or pump.
Tether bootstrapped crypto demand, even if it was done so fraudulently
- rawtxapp 6y agoFor what it's worth makerdao also created DAI backed by crypto collateral (and stablecoins) and right now the outstanding debt from maker alone is like 2B+ and growing pretty rapidly (daistats.com). I know for a fact that many traders are using makerdao to leverage their crypto holdings to buy even more crypto, so there's definitely a circular money pump that happens (for example: WBTC-A vaults have an outstanding 240M$ debt, presumably significant chunk is used to buy back more BTC).