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.
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.
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.
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.
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