The Tether FUD is so dumb, but it's the last straw being grasped by perma-bears.
It’s the mother of all Ponzi schemes, clearly, and is definitely going to implode in the next big pullback.
Why is this relevant when you can withdraw tethers for USD at any participating exchange? Or are you saying that None of the exchanges that support tether (eg. bitfinex) has never fulfilled a withdraw?
>It’s the mother of all Ponzi schemes, clearly, and is definitely going to implode in the next big pullback.
Sounds like a great way to make a lot of money. Tether is currently trading 1:1 with USD (yes, even at exchanges that offer real USD). It should be easy to short-sell a bunch of tether, and buy it back when in collapses. And unlike short-selling stocks, your downside should be relatively low as tethers can't realistically go above their current price.
> Sounds like a great way to make a lot of money. Tether is currently trading 1:1 with USD (yes, even at exchanges that offer real USD). It should be easy to short-sell a bunch of tether, and buy it back when in collapses. And unlike short-selling stocks, your downside should be relatively low as tethers can't realistically go above their current price.
All crypto exchanges are rigged casinos. The only way to win is not to play.
Tether absolutely swings up and down depending on how many people are fleeing into or out of cryptos at any given moment. We’ve seen like +5-7% and -20%. That’s enough to blow away any leveraged position.
Finally, of course, you neglect counterparty risk. I have to put up collateral on this short which any of these exchanges could simply run for the hills with, as they do, regularly. Seriously, who lets you short Tether except for Bitfinex - and what will they pay you out in, more Tether? They don’t have a bank account. That’s why they invented Tether.
Because if you're worried that they don't have enough real us dollars to back the USDTs that they've printed, being able to directly redeem USDT for USD isn't really going to make a difference.
>All crypto exchanges are rigged casinos. The only way to win is not to play.
That seems like an overly broad statement to make, especially there are a few exchanges that try to be as by-the-books as possible.
>Tether absolutely swings up and down depending on how many people are fleeing into or out of cryptos at any given moment. We’ve seen like +5-7% and -20%. That’s enough to blow away any leveraged position.
Or just don't leverage to the max? Short-selling $1000 worth of USDT with $1000 of USD in reserve and 3x leverage should allow you to withstand most shocks without being forced to liquidate.
>Seriously, who lets you short Tether except for Bitfinex
Kraken, for one.
>and what will they pay you out in, more Tether? They don’t have a bank account. That’s why they invented Tether.
Again, this goes back to my first comment. Are you claiming that bitfinex isn't processing fiat withdraws (eg. wire/ACH transfer to a real bank)?
The quintessential part is this: The New York attorney general’s filing refutes the extreme version of those doubts — Tether mostly had the dollars — but it is nonetheless a wild ride that alleges that Tether’s backing might not be as good as it claims.
https://www.theblockcrypto.com/post/48857/former-head-of-cir...
I worked with Dan, I worked at Circle, we redeemed / minted billions and billions with Tether.
This is a classic strategy employed by scammers to legitimize a scam. You pick a prominent individual and you make the fraud work for them, so they can tell other people it’s legit.
Their last auditor quit, half way through the audit. No audit, no legitimacy, period.
If your claim is that you redeemed billions of dollars in tethers for fiat USD then that’s newsworthy.
Even if that were the case though, it does nothing to prove that Tether is able to cover its commitments. Especially not with the additional $16B USD on the books.
Don’t carry water for these scammers they literally don’t have a bank account and admitted in court [1] much of their reserves are IOUs and crypto. Audit or gtfo (to tether inc not you).
[1] https://www.google.com/amp/s/www.theblockcrypto.com/amp/dail...
Bitcoin is a social phenomena - no government or company backs it. The only reason it has value is if people value it. Bitcoin promoters have convinced people it's a store of value, like gold except digital. As the Cult of Bitcoin spreads, it doesn't take that many new enthusiasts to push the price up, as unlike literally all other commodities on earth, the supply of bitcoin is truly constrained and there cannot be anymore made in response to demand above the normal rate of inflation.
This time, big money, institutions, and the very rich are coming in addition to the widespread purchase by retail. The price is going to rise a lot.