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A comment on Tether is “too big to fail” – the entire crypto industry utterly depends on it. Parent comment

Re:Tether is “too big to fail” – the entire crypto industry ... by tim333 on Sunday December 13, 2020 @06:31PM (#25411583)
Well if tether went to say 90c and dropping, tether holders would certainly try to swap them for bitcoins but I'm not sure the bitcoin holders would be keen resulting in bitcoin going up in tether terms but probably down in US$ terms as tether fell.
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Re:Tether is “too big to fail” – the entire crypto industry ... by seppel on Sunday December 13, 2020 @06:55PM (#25411746)
But why would it go down in USD in the demand increases?
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Re:Tether is “too big to fail” – the entire crypto industry ... by tim333 on Sunday December 13, 2020 @08:05PM (#25412200)
If tether was collapsing people would probably panic a bit and try to exit crypto for normal money. It's not certain though.
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Re:Tether is “too big to fail” – the entire crypto industry ... by gillesjacobs on Sunday December 13, 2020 @07:06PM (#25411832)
Because demand for Tether would not actually increase.

BTC holders would not look to exchange for Tether in the case Tether turned up unbacked. If BTC sellers were to sell they would exchange for other cryptocurrencies or more likely other stablecoins that are actually auditted.

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Re:Tether is “too big to fail” – the entire crypto industry ... by user-the-name on Monday December 14, 2020 @09:41AM (#25418065)
If Tether goes does, and people try to exit to USD via Bitcoin, then the few exchanges that still trade Bitcoin for USD would be overwhelmed and would run out of liquidity, causing Bitcoin to drop as well.
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