15 ms·

> Most Bitcoins are not bought with USD but with Tether and other stable coins. Isn't this like a pedantic detail? How is Tether bought? USD/EUR/GBP/JPY, right

> Most Bitcoins are not bought with USD but with Tether and other stable coins. Isn't this like a pedantic detail? How is Tether bought? USD/EUR/GBP/JPY, right? Fiat -> stablecoin -> BTC Fiat -> BTC basically the same journey my point is, according to this https://markets.chainalysis.com/ https://markets.chainalysis.com/ there's $3b/day in BTC inflows...

Nursie 4y ago
> How is Tether bought? Nobody knows.
- from 4y ago
  https://app.tether.to https://app.tether.to with wire transfer. There are high minimums, KYC requirements, and excluded jurisdictions (notably the US). Depending on your opinion these onerous requirements exist either for regulatory reasons or to prevent a bank run because Tether is not fully backed.
  - Nursie 4y ago
    The point is that nobody can really say that all tether is bought this way, that there is a genuine flow from cash to the tether company to exchanges, and there are very reasonable suspicions that tether is just magicked into existence for use on friendly/complicit exchanges to help control the price. Perhaps I should have said it's less a question of how tether is bought and more a question of if tether can be said to be bought, at its point of origin.
nrb 4y ago
> How is Tether bought? USD/EUR/GBP/JPY, right? The question is how much tether is originating as part of a cash transaction vs how much is being minted out of thin air specifically to buoy the price of cryptos.
treis 4y ago
That middle step is multiplying the fiat going to BTC because Tether (probably) is only partially backed and (probably) buying crypto to make money. So your one dollar that goes to tether gets multiplied. Something like $1 -> 1 Tether -> $1 worth of bitcoin $1 -> $1 worth of bitcoin (as an "investment" for Tether to make money) $1 worth of bitcoin -> Collateral on loan to Tether -> $0.50 -> $0.50 worth of bitcoin We don't know exactly what Tether is doing with their money because they don't open their books. Safe to assume it's some sketchy stuff though.
- KptMarchewa 4y ago
  Sounds very similar to Robinhood's 2019 infinite money hack.
bluecalm 4y ago
Tether is printed and given out at will to buddies of scammers who run it. "Hey Paolo, can you help me with 100M as my exchange is in trouble?", " Sure thing, just write an IOU and I got you". Now Tether is "backed by commercial paper" and there is 100M of it in circulation to prop crypto. And if you think my language isn't appropriate, Tether is run my literal scammers: a proven financial fraud and an online poker cheat. Chances of it being even semi legit operation are zero.
lordfrito 4y ago
> Fiat -> stablecoin -> BTC > Fiat -> BTC > basically the same journey stablecoin == fiat is the lie that enabled and perpetuates the crypto madness BTC holders always had trouble getting USD due to KYC onramps and offramps. People couldn't get out of a volatile BTC position back into stable USD fast enough... so holding BTC just wasn't worth the risk. But Tether shows up and voila the holding problem is solved as it's a dollar "equivalent" that doesn't have to deal with pesky KYC laws slowing down USD cash-out. Let's trade one magic token for another on a whim, we'll deal with getting USD later. They're good for it. "Line go up" madness starts. To anyone that's been actually paying attention, Tether is a house of cards waiting to implode. They are not worth 1 USD each, no matter how much anyone wishes, hopes or screams it does. One by one the so-called stablecoins are being shown to be the garbage/scams they are. Once the market wakes up and realizes that they aren't actually worth a dollar, then BTC has nothing left to artificially prop it up. Popcorn time.

Nursie 4y ago

> How is Tether bought? Nobody knows.

from 4y ago
https://app.tether.to https://app.tether.to with wire transfer. There are high minimums, KYC requirements, and excluded jurisdictions (notably the US). Depending on your opinion these onerous requirements exist either for regulatory reasons or to prevent a bank run because Tether is not fully backed.
- Nursie 4y ago
  The point is that nobody can really say that all tether is bought this way, that there is a genuine flow from cash to the tether company to exchanges, and there are very reasonable suspicions that tether is just magicked into existence for use on friendly/complicit exchanges to help control the price. Perhaps I should have said it's less a question of how tether is bought and more a question of if tether can be said to be bought, at its point of origin.

nrb 4y ago

> How is Tether bought? USD/EUR/GBP/JPY, right? The question is how much tether is originating as part of a cash transaction vs how much is being minted out of thin air specifically to buoy the price of cryptos.

treis 4y ago

That middle step is multiplying the fiat going to BTC because Tether (probably) is only partially backed and (probably) buying crypto to make money. So your one dollar that goes to tether gets multiplied. Something like $1 -> 1 Tether -> $1 worth of bitcoin $1 -> $1 worth of bitcoin (as an "investment" for Tether to make money) $1 worth of bitcoin -> Collateral on loan to Tether -> $0.50 -> $0.50 worth of bitcoin We don't know exactly what Tether is doing with their money because they don't open their books. Safe to assume it's some sketchy stuff though.

KptMarchewa 4y ago
Sounds very similar to Robinhood's 2019 infinite money hack.

bluecalm 4y ago

Tether is printed and given out at will to buddies of scammers who run it. "Hey Paolo, can you help me with 100M as my exchange is in trouble?", " Sure thing, just write an IOU and I got you". Now Tether is "backed by commercial paper" and there is 100M of it in circulation to prop crypto. And if you think my language isn't appropriate, Tether is run my literal scammers: a proven financial fraud and an online poker cheat. Chances of it being even semi legit operation are zero.

lordfrito 4y ago

> Fiat -> stablecoin -> BTC > Fiat -> BTC > basically the same journey stablecoin == fiat is the lie that enabled and perpetuates the crypto madness BTC holders always had trouble getting USD due to KYC onramps and offramps. People couldn't get out of a volatile BTC position back into stable USD fast enough... so holding BTC just wasn't worth the risk. But Tether shows up and voila the holding problem is solved as it's a dollar "equivalent" that doesn't have to deal with pesky KYC laws slowing down USD cash-out. Let's trade one magic token for another on a whim, we'll deal with getting USD later. They're good for it. "Line go up" madness starts. To anyone that's been actually paying attention, Tether is a house of cards waiting to implode. They are not worth 1 USD each, no matter how much anyone wishes, hopes or screams it does. One by one the so-called stablecoins are being shown to be the garbage/scams they are. Once the market wakes up and realizes that they aren't actually worth a dollar, then BTC has nothing left to artificially prop it up. Popcorn time.