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A comment on The Bit Short: Inside Crypto’s Doomsday Machine. Parent comment

Re:The Bit Short: Inside Crypto’s Doomsday Machine by quickthrower2 on Friday January 15, 2021 @05:40AM (#25789239)
If tether is pumping BTC then it’ll stop pumping BTC when it’s taken away. Weak hands will fold and then there will be a crash
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Re:The Bit Short: Inside Crypto’s Doomsday Machine by comboy on Friday January 15, 2021 @05:46AM (#25789290)
OK, yes, that's a fair point. But it's not clear to me that pumping being taken away would be a bigger change than people trying to get out of USDT and buying BTC.

Also we've been there (mtgox's willy etc). I don't think bitcoin will be much less volatile any time soon. https://www.youtube.com/watch?v=XbZ8zDpX2Mg

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by dragonwriter on Friday January 15, 2021 @06:35AM (#25789655)
> But it's not clear to me that pumping being taken away would be a bigger change than people trying to get out of USDT and buying BTC

People trying to get out of USDT into BTC because the USDT:USD parity assumption collapses will boost BTC:USDT prices, but probably not enough to avoid dropping BTC:USD, because it would be less than the USDT:USD drop, is the idea.

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by garmaine on Friday January 15, 2021 @12:25PM (#25793399)
How would you sell USDT? You’d buy on a BTC/USDT market. These markets aren’t unified—there are different markets for tether and backed USD. Who would be counterparty to a tether exchange?

Thise specific USDT pairings would crash. If they wanted USD (as they presumably do), they’d then crash the other stable coin or backed pairings.

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by leppr on Friday January 15, 2021 @06:28AM (#25789610)
People are not buying BTC to get out of USDT, they're buying other stablecoins and tokens pegged to real world assets. The last week has seen a surge in the price of those tokens compared to USDT. I've made good money arbitraging the bouts of panic.
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Re:The Bit Short: Inside Crypto’s Doomsday Machine by TomSwirly on Friday January 15, 2021 @04:01PM (#25796410)
Bitcoin has no fundamental/breakup value and no market maker.

In the same way that there's no obvious ceiling to its value, if a lot of people try to get out of it at once, there's no obvious floor either.

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by yeneek on Friday January 15, 2021 @05:55AM (#25789344)
Tether market cap is 24bil, Bitcoin market cap is 714bil. Its just 3%. I think that Tether isn't inflating BTC that much. The institutions that buy BTC like PayPal, Square, JPMorgan have much bigger effect on Bitcoin than Tether.
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Re:The Bit Short: Inside Crypto’s Doomsday Machine by JackFr on Friday January 15, 2021 @06:04AM (#25789429)
That’s not quite how it’s gonna work. It doesn’t matter what the Tether market cap is. The BTC market cap is coins x price. If Tethers represent 70% of inflow and they disappear, price is gonna come down. Likely a lot more than 3%.
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Re:The Bit Short: Inside Crypto’s Doomsday Machine by ur-whale on Friday January 15, 2021 @06:10AM (#25789475)
This is addressed in the article.

Basically the market cap of BTC is not relevant here, but rather the daily volume.

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by yeneek on Friday January 15, 2021 @06:13AM (#25789493)
JackFr Fair point. Thank you.

Well, it will be an interesting week for sure.

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Re:The Bit Short: Inside Crypto’s Doomsday Machine by Bellamy on Friday January 15, 2021 @07:47AM (#25790303)
And from the 3% of tether, probably 74% is actually been backed.
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