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Consider it such: there is a company that wants bitcoin to stay above 15k. Every time the order books show a significant decline below 15k, that company issues
by once_inc 4y ago
Consider it such: there is a company that wants bitcoin to stay above 15k. Every time the order books show a significant decline below 15k, that company issues new tokens that are treated as dollars by exchanges in order to buy bitcoin.
This stays very much viable. Right up to the point that it isn't. Then, people will wonder what is backing those tokens, and if they want to risk the event that they aren't worth their advertised value. Then, a liquidation crunch happens and the company collapses in onto itself.
- d3nj4l 4y agoOk, so roughly speaking, 1 BTC != USD 15k, 1 BTC = USDT 15k, and people broadly agree 1 USDT = 1USD (for now)?
- candiddevmike 4y agoIMO, the entire crypto market cap broadly hangs on folks believing that last part.
- xorcist 4y agoThat's not really an explanation as Tether does not make cooking the books any easier. You could just as easily lie about how much USD or BTC you have. It would also be a whole lot less visible, having huge unexplained stablecoin holdings is a giant red flag visible to everyone. It does not make sense. That said, the Tether situation is clearly fraudulent in some way, just not the one people usually put forward. So stay away, if you aren't already.
- gruez 4y ago>Every time the order books show a significant decline below 15k, that company issues new tokens that are treated as dollars by exchanges in order to buy bitcoin. source? Sources like these[1] don't any mention recent issuances by tether. [1] https://twitter.com/usdcoinprinter https://twitter.com/usdcoinprinter