32 ms·

At least they're disclosing their stake, it's more honest that most people putting out hokum about crypto.

dragontamer 5y ago
Oh yeah. I appreciate them disclosing their stake. I just... don't think their logic is very good in that sentence. But its kind of a tangent and unrelated to the rest of the post. I remember reading some advice from some seasoned traders years (maybe ~decade ago). Knowing the future is overrated. Timing is everything. Even if you knew that Tether was worth $0 as of the year 2025 with a magical crystal ball, if you don't know all the price points between now and then (and therefore are unable to make an appropriate "timing" for placing your bet), you'll lose money. ------- I think a lot of us around here are willing to bet Tether is worthless. But when does everyone else realize it? That's the big question for any bubble. Timing is everything, even when you are correct. In the meantime, Tether will be worth $1 or so, and "be operational". So even a perfectly accurate crystal ball seeing into the future doesn't help you in the now.
- TheAlchemist 5y ago
  As the saying goes "the market can remain irrational longer than you can remain solvent" !
  - gruez 5y ago
    But isn't this a special case? Unlike shorting a stock there's an upper bound on the price ($1), if it's exceeded they'll print more to depress it, so the risk of getting margin called is low. The only real risk is the financing cost.
    - TheAlchemist 5y ago
      I don't know - I would say there is a massive counterparty risk too - my understanding is that to short Tether, you need to do it on an exchange. And if this ponzi theory is right, I would be pretty woried about the return of any money from the exchanges.
      - dragontamer 5y ago
        If you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. The best move is to just sit back and wait for the chaos to unfold. Even then: what if USDT becoming worthless causes people to hoard BTC? What if BTC-USD spikes severely, as people "rush to safety" ? Is there reason to believe that a Tether collapse would in fact bring down BTC with it?
        gruez 5y ago
        > If you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? >They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. I'm not sure whether that makes sense or not. I guess it's worth doing for revenge reasons, but if there are people willing to pay $1.1 for a $1 IOU, that seems like the perfect opportunity to decrease your deficit.
      - gruez 5y ago
        You can trade USDT-USD on kraken and coinbase, which are some of the more regulated exchanges out there. So it's not as bad as shorting it on bitfinex itself.
- kemonocode 5y ago
  > In the meantime, Tether will be worth $1 or so, and "be operational". So even a perfectly accurate crystal ball seeing into the future doesn't help you in the now. I brought it up in another post here in this thread, but I think the easiest way to know when Tether is genuinely in trouble is to keep an eye on the settlement iFinex reached with the NYAG [0] and if it's unable to fulfill it. Until then, be as sketchy as it may, it's "safe". [0] https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-...
  - ghawr 5y ago
    Surely they can post 18 million?
SV_BubbleTime 5y ago
Agreed, how amazing would it be to see that on all articles! I’d like to think that even if I really disagreed with the article, I’d still appreciate the disclosure, but might just use it for fuel to ignore the content. IDK.

Oh yeah. I appreciate them disclosing their stake. I just... don't think their logic is very good in that sentence. But its kind of a tangent and unrelated to the rest of the post. I remember reading some advice from some seasoned traders years (maybe ~decade ago). Knowing the future is overrated. Timing is everything. Even if you knew that Tether was worth $0 as of the year 2025 with a magical crystal ball, if you don't know all the price points between now and then (and therefore are unable to make an appropriate "timing" for placing your bet), you'll lose money. ------- I think a lot of us around here are willing to bet Tether is worthless. But when does everyone else realize it? That's the big question for any bubble. Timing is everything, even when you are correct. In the meantime, Tether will be worth $1 or so, and "be operational". So even a perfectly accurate crystal ball seeing into the future doesn't help you in the now.

TheAlchemist 5y ago
As the saying goes "the market can remain irrational longer than you can remain solvent" !
- gruez 5y ago
  But isn't this a special case? Unlike shorting a stock there's an upper bound on the price ($1), if it's exceeded they'll print more to depress it, so the risk of getting margin called is low. The only real risk is the financing cost.
  - TheAlchemist 5y ago
    I don't know - I would say there is a massive counterparty risk too - my understanding is that to short Tether, you need to do it on an exchange. And if this ponzi theory is right, I would be pretty woried about the return of any money from the exchanges.
    - dragontamer 5y ago
      If you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. The best move is to just sit back and wait for the chaos to unfold. Even then: what if USDT becoming worthless causes people to hoard BTC? What if BTC-USD spikes severely, as people "rush to safety" ? Is there reason to believe that a Tether collapse would in fact bring down BTC with it?
      - gruez 5y ago
        > If you're playing vs Bitfinex, then what if they stop printing Tether and force the price to go up? >They obliterate your short position, and once you're margin called, they go back to their printing Tethers business. You can't win at this game. I'm not sure whether that makes sense or not. I guess it's worth doing for revenge reasons, but if there are people willing to pay $1.1 for a $1 IOU, that seems like the perfect opportunity to decrease your deficit.
    - gruez 5y ago
      You can trade USDT-USD on kraken and coinbase, which are some of the more regulated exchanges out there. So it's not as bad as shorting it on bitfinex itself.
kemonocode 5y ago
> In the meantime, Tether will be worth $1 or so, and "be operational". So even a perfectly accurate crystal ball seeing into the future doesn't help you in the now. I brought it up in another post here in this thread, but I think the easiest way to know when Tether is genuinely in trouble is to keep an eye on the settlement iFinex reached with the NYAG [0] and if it's unable to fulfill it. Until then, be as sketchy as it may, it's "safe". [0] https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-...
- ghawr 5y ago
  Surely they can post 18 million?

SV_BubbleTime 5y ago

Agreed, how amazing would it be to see that on all articles! I’d like to think that even if I really disagreed with the article, I’d still appreciate the disclosure, but might just use it for fuel to ignore the content. IDK.