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> IMO it's Bitcoin in combination with Tether that's the actual Ponzi. Bingo. The problem is, the big players have no interest in unwinding the scheme. As lon

> IMO it's Bitcoin in combination with Tether that's the actual Ponzi. Bingo. The problem is, the big players have no interest in unwinding the scheme. As long as exchanges can wash trade USDT:BTC to drive the inflow of retail investment, things keep going. What'll be interesting is if BTC continues to fall. I think the low $30k is a support level; if it crashes below that, I bet we're going to see more outflow from undercapitalized exchanges and things will adjust hard.

inter_netuser 5y ago
undercapitalized exchanges? you think they are running on fractional reserve?
- celticninja 5y ago
  That is pretty much the accusation against tether. Most exchanges use it, so rather than the exchanges being knowingly undercapitalized, they are by virtue of using tether. Which is supposed to be 1=1 backed with the $. Which it isnt, and it is not clear how backed it actually is.
  - inter_netuser 5y ago
    They are under regular audit by NY AG. Do you not think they'd be jail by now for fraud? They don't disclose details, yes. but neither does your bank, really. Finance tends to be tight-lipped.
    - celticninja 5y ago
      They always claimed it was backed 1:1 with the US dollar. Then they paid a fine to the NY AG because it was not backed 1:1, and as part of that they had to produce quarterly reports about how it was backed. https://www.google.com/amp/s/amp.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9 https://www.google.com/amp/s/amp.ft.com/content/529eb4e6-796... It still isn't backed 1:1 based in their own admission. This isn't about being tight lipped, this is willfully misleading customers.
      - inter_netuser 5y ago
        that's just 3% in cash. the fed requirement for reserves today is literally zero percent. they are just an offshore bank, none of which have insurance and very different reserve requirements. Hold trilions of dollars. Just clickbait articles farming eyeballs.
        celticninja 5y ago
        Dude I think you are kidding yourself. There is something not legit about Tether, or at least it feels that way. And neither Bitfinex or ifinex have done anything to help that through their misleading and sometimes outright lying, about Tether and its reserves.

inter_netuser 5y ago

undercapitalized exchanges? you think they are running on fractional reserve?

celticninja 5y ago
That is pretty much the accusation against tether. Most exchanges use it, so rather than the exchanges being knowingly undercapitalized, they are by virtue of using tether. Which is supposed to be 1=1 backed with the $. Which it isnt, and it is not clear how backed it actually is.
- inter_netuser 5y ago
  They are under regular audit by NY AG. Do you not think they'd be jail by now for fraud? They don't disclose details, yes. but neither does your bank, really. Finance tends to be tight-lipped.
  - celticninja 5y ago
    They always claimed it was backed 1:1 with the US dollar. Then they paid a fine to the NY AG because it was not backed 1:1, and as part of that they had to produce quarterly reports about how it was backed. https://www.google.com/amp/s/amp.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9 https://www.google.com/amp/s/amp.ft.com/content/529eb4e6-796... It still isn't backed 1:1 based in their own admission. This isn't about being tight lipped, this is willfully misleading customers.
    - inter_netuser 5y ago
      that's just 3% in cash. the fed requirement for reserves today is literally zero percent. they are just an offshore bank, none of which have insurance and very different reserve requirements. Hold trilions of dollars. Just clickbait articles farming eyeballs.
      - celticninja 5y ago
        Dude I think you are kidding yourself. There is something not legit about Tether, or at least it feels that way. And neither Bitfinex or ifinex have done anything to help that through their misleading and sometimes outright lying, about Tether and its reserves.