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A comment on Bitcoin Halving Just Occured. Parent comment

Re:Bitcoin Halving Just Occured by xtracto on Monday May 11, 2020 @05:23PM (#23147250)
> - They had 30% of their assets seized in a money laundering sting but of course, the exchange rate remained 1:1 instead of 1:0.7

Thsi one I don't understand: A ton of MXN has been seized because El Chapo had been using it for shady stuff, but yet nobody expects the MXN/USD pair to suffer from that.

Why would it be different? The fact that someone takes the token "by force" won't suddenly decrease their value.

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Re:Bitcoin Halving Just Occured by arcticbull on Monday May 11, 2020 @05:33PM (#23147355)
If El Chapo seized 30% of the MXN in existence I'd suggest the currency would in fact fluctuate lol.
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Re:Bitcoin Halving Just Occured by wmf on Monday May 11, 2020 @05:47PM (#23147488)
AFAIK MXN never claimed to be backed by USD, but Tether claimed that USDT are backed 1:1 by USD in a bank account. We now know that there aren't $6B in that account but people still choose to trade USDT near par with USD; I guess this is analogous to how the value of the USD didn't fall when it became no longer gold-backed.
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Re:Bitcoin Halving Just Occured by arcticbull on Monday May 11, 2020 @06:01PM (#23147628)
...which is literally the flagship problem BTC purports to attempt to solve.
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Re:Bitcoin Halving Just Occured by AnthonyMouse on Monday May 11, 2020 @06:40PM (#23147992)
Which is why USDT isn't Bitcoin. Its purpose is to solve a different problem.
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Re:Bitcoin Halving Just Occured by testrun on Monday May 11, 2020 @08:42PM (#23149295)
Which is?
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Re:Bitcoin Halving Just Occured by bostonpete on Monday May 11, 2020 @05:36PM (#23147386)
Printing new money is generally understood to devalue existing money, why wouldn't the opposite be true? I don't understand your El Chapo point or know what sort of assets were confiscated. Even if it was all cash, I'm guessing it wasn't just incinerated.
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Re:Bitcoin Halving Just Occured by AlexCoventry on Monday May 11, 2020 @06:01PM (#23147620)
They mean that 30% of the assets backing tether were seized, not that the tether itself was seized.
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Re:Bitcoin Halving Just Occured by TylerE on Monday May 11, 2020 @05:46PM (#23147479)
Because Tether claims to hold $1 for every $USDT.

But they obviously don't, they hold, at most, 70 cents.

It'll be a bank run.

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