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The thought process here is that if you're stuck holding tether if/when it collapses, you can just sell for a crypto that hasn't collapsed. But who in their rig
by rcohngru 5y ago
The thought process here is that if you're stuck holding tether if/when it collapses, you can just sell for a crypto that hasn't collapsed. But who in their right minds would want to trade something of value for something that has just been shown to be worth $0?
- trident5000 5y agoFor exchanges that use USDT, exchanging for crypto is your only immediate option.
- rcohngru 5y agoRight, but who would want to be on the other side of that trade? You're telling me that if I have something worth $0 and you have something of value, you'd want to make that trade with me?
- trident5000 5y agoExactly, thats what causes a squeeze/absurd drive up in price. Its why I dont hold tether.
- dekerta 5y agoAre you thinking of something like a short squeeze? That only happens because shorts would be forced to buy shares to cover their positions. I don't see how that would apply here. Who's forced to buy people's tether if the price goes to zero? In reality, everyone who holds tether would just be screwed. Their imaginary token would be worth nothing and they wouldn't be able to exchange them for anything. The value would just disappear in to the air