Re:Ask HN: What you up to? (Who doesn't want to be hired?)
by Traubenfuchs on Tuesday November 02, 2021 @04:45AM
(#29078601)
Tether is just one of many cryptocurrencies -wouldn‘t its implosion lead to people pulling out and investing their money in other crypto, hence consolidating the market and making every other coin rise?
Re:Ask HN: What you up to? (Who doesn't want to be hired?)
by CircaSurvive on Tuesday November 02, 2021 @05:29AM
(#29078908)
Would you trade me a dollar for 12 cents? If it implodes who’s going to trade you the other coins for something of questionable value?
Additionally, say you hold 50% tether and the rest in a mix of coins. Your portfolio would be cut in half. How does that result in other coins being purchased if people are uncertain of tethers true value and unwilling to trade for it.
Then there’s the whole using tether as margin for leverage or if your margin is based on tether, and that disappears, your position will be liquidated. Now add the layers of derivatives that are quoted and settled in tether. Additionally what exchanges can you trust that will let you cash out in an event like this? People will run to the doors and liquidity will disappear creating a larger sell off as people seek shelter in liquid assets.
Re:Ask HN: What you up to? (Who doesn't want to be hired?)
by Traubenfuchs on Tuesday November 02, 2021 @09:20AM
(#29080778)
God I hate "crypto". It's all a big fucking "get rich quick scam", all of it, without exception. Hopefully I will cash out at the right time (probably not).
Re:Ask HN: What you up to? (Who doesn't want to be hired?)
by tata71 on Wednesday November 03, 2021 @12:30AM
(#29091115)
Not true!
There's also drugs and gambling! /s
Re:Ask HN: What you up to? (Who doesn't want to be hired?)
by el_dev_hell on Wednesday November 03, 2021 @06:48AM
(#29092979)
I see the /s, but you're right. Those are literally non-scam uses of crypto.
Now if they actually had this financing in place, this would all be fine - but nobody can find a proper accounting of who they're doing business with at the scale they claim to be doing business, beyond the observation that none of the big US players seem to have any business with them - so what assets are actually backing tether?
https://www.forbes.com/sites/nicholasgans/2021/05/13/tether-...
Note that the vast majority is "commercial paper": basically short term loans to companies with relatively risky backing. The problem is that's all we seem to know: no one knows from who they've been buying these. It might be large US companies with 50 year histories, or it might be Chinese property developers at risk of bankruptcy (at which point international debtors will be the first to lose their money).