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Vulnerable people losing vital wealth when Tether pops would be tragic. A "stablecoin" with <4% liquid reserves... https://www.coindesk.com/tether-first-reserve

Vulnerable people losing vital wealth when Tether pops would be tragic. A "stablecoin" with <4% liquid reserves... https://www.coindesk.com/tether-first-reserve-composition-report-usdt https://www.coindesk.com/tether-first-reserve-composition-re...

spiffydave 5y ago
Yeah, Tether isn't great. Why use that as your example? There are plenty of other stablecoins and the article was about Bitcoin.
- paulgb 5y ago
  There’s an argument that the price of Bitcoin is propped up by Tether, a la Archegos. I was initially pretty skeptical, but the caginess of Tether about what commercial paper they hold makes me think it has some credence.
  - spiffydave 5y ago
    There's so much money coming into crypto and multiple studies have looked at money coming into Tether and the effect on Bitcoin price and it's negligible. Plus, money has been coming out of Tether and into other stablecoins and what is happening with Bitcoin's price? Yeah, up.
    - paulgb 5y ago
      Tether’s market cap is nearly at an all time high after roughly tripling in 2021 alone. What else should I be looking for as evidence of money coming out of Tether? Which studies are you referring to? https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
      - spiffydave 5y ago
        I'm referring to the comparison between Tether and USDC. Recently Tether has been flat and USDC is growing. Tether is obviously still #1 and not something I would hold as it does appear shady. https://www.coindesk.com/whats-going-on-with-tether https://www.coindesk.com/whats-going-on-with-tether https://voxeu.org/article/stable-coins-dont-inflate-crypto-markets https://voxeu.org/article/stable-coins-dont-inflate-crypto-m... https://www.sciencedirect.com/science/article/abs/pii/S0165176518302556# https://www.sciencedirect.com/science/article/abs/pii/S01651...

spiffydave 5y ago

Yeah, Tether isn't great. Why use that as your example? There are plenty of other stablecoins and the article was about Bitcoin.

paulgb 5y ago
There’s an argument that the price of Bitcoin is propped up by Tether, a la Archegos. I was initially pretty skeptical, but the caginess of Tether about what commercial paper they hold makes me think it has some credence.
- spiffydave 5y ago
  There's so much money coming into crypto and multiple studies have looked at money coming into Tether and the effect on Bitcoin price and it's negligible. Plus, money has been coming out of Tether and into other stablecoins and what is happening with Bitcoin's price? Yeah, up.
  - paulgb 5y ago
    Tether’s market cap is nearly at an all time high after roughly tripling in 2021 alone. What else should I be looking for as evidence of money coming out of Tether? Which studies are you referring to? https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
    - spiffydave 5y ago
      I'm referring to the comparison between Tether and USDC. Recently Tether has been flat and USDC is growing. Tether is obviously still #1 and not something I would hold as it does appear shady. https://www.coindesk.com/whats-going-on-with-tether https://www.coindesk.com/whats-going-on-with-tether https://voxeu.org/article/stable-coins-dont-inflate-crypto-markets https://voxeu.org/article/stable-coins-dont-inflate-crypto-m... https://www.sciencedirect.com/science/article/abs/pii/S0165176518302556# https://www.sciencedirect.com/science/article/abs/pii/S01651...