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It really can't happen this way. Between 3 and 4, you'd tank bitcoin's value significantly (assuming $1B is able to triple bitcoin's market value). Any sizeable

by chunky1994 5y ago

It really can't happen this way. Between 3 and 4, you'd tank bitcoin's value significantly (assuming $1B is able to triple bitcoin's market value). Any sizeable liquidation of bitcoin at an inflated price is going to affect the price heavily and so now you no longer have 100% backing. (This of course depends on how elastic BTC/USDT price is)

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throwaway6734 5y ago
Why would it necessarily tank the price? Using tether to pump the price attracts new investors, and if the rally starts to slow, they can just print more
eightysixfour 5y ago
He isn't claiming the $1b tripled bitcoin's price, just that the price tripled while they were holding $1b in coins. $1b could also triple bitcoins price without the liquidity problems you're talking about because the initial purchase, done intelligently, can increase the price enough to kick-start another buying cycle (bitcoin goes up 100%, ends up on MSM news channels, people download coinbase and buy bitcoin, loop continues).