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A failure of tether would certainly cause a ton of market volatility, but there's enough tether substitutes for the markets to adjust pretty quickly. Sure, the
by drcode 6y ago
A failure of tether would certainly cause a ton of market volatility, but there's enough tether substitutes for the markets to adjust pretty quickly. Sure, the failure might freeze a lot of funds and depress market caps a bit in the process.
- parliament32 6y agoPersonally I doubt it. Look at the market volumes -- everyone who wants to trade shitcoins just does it with BTC pairs, and most of the big boy exchanges support USD-BTC directly.. tether was a good idea when exchanges didn't want to mess with USD but that's not really the case anymore.
- drcode 6y agoI think for many people it's still hard to temporarily and quickly exit a long BTC or long ETH position, but daytraders want to do this with great frequency. This is doubly true for people outside the US, not to mention people who are trying to skirt capgain taxes. Of course, an argument could also be made that a tether failure would cause people to flee to BTC or ETH and paradoxically cause prices to rise.