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I'm someone who's highly skeptical of Tether, but has no interest in shorting it. Here's a few reasons why: 1) I'm pretty confident Tether will collapse, but I
by ARandumGuy 5y ago
I'm someone who's highly skeptical of Tether, but has no interest in shorting it. Here's a few reasons why:
1) I'm pretty confident Tether will collapse, but I have no idea when that will actually happen. The old saying is that "The market can remain irrational longer then you can remain solvent"
2) I'm not an expert in cryptocurrency shorting, but the scenario you stated involved shorting Tether against other cryptocurrencies. Since Tether is heavily integrated with the rest of the crypto market, if Tether falls, it will likely heavily impact the rest of the market. It may be possible to make money off of that, but it would also be possible to lose money if you time things incorrectly.
3) It's not all about the money. I'm making plenty of money at my day job, and feel confident in my existing investments. I don't need to spend my time gambling in the crypto market.
- anonymoushn 5y agoYou can short tether against USD for like less than two pennies per year at FTX, so this is a pretty good deal if you want the exposure for a decade or so, and you don't need exposure to other cryptocurrencies.
- paulgb 5y agoUSD, or USDC? If it's real USD, I'd love to know how.
- anonymoushn 5y agoReal dollars yes. You deposit money at FTX and then you short the tether quarterly futures: https://ftx.com/trade/USDT-0924 https://ftx.com/trade/USDT-0924 I think most people would be more worried about counterparty risk with FTX than with Circle though.
- paulgb 5y agoBy real dollars I mean dollars in an FDIC or SIPC-insured account, unless I'm mistaken this just appears to be an IOU from FTX.
- anonymoushn 5y agoAs far as I know these products are not legal to offer in the US, so you won't find them offered by a US brokerage. The insurance funds you mention only insure a tiny amount per account anyway.
- paulgb 5y agoSIPC covers up to the first $500k per account. Not much to a hedge fund, but a lot to a small fry like me. It's not so much as the insurance coverage, anyway, so much of the vote of confidence that an insurer is willing to cover them.
- deleted 5y ago[deleted]
- tshaddox 5y ago> I'm pretty confident Tether will collapse, but I have no idea when that will actually happen. The trouble with this is that it’s not a very meaningful epistemological claim unless you can put some ballpark timeline on your prediction. Will it happen before the Sun is a red giant?