1 BTC = $8.2k, it’s up 735% this yr UPDATE 5/19: BTC @ $42k :damn:
- Thread starter JordanWearinThe45
- Start date
That really doesn’t justify it.
Then again, if those same people ended up becoming millionaires we can't really hate on em. It's all risky business.
One of the major rules you must follow in life period, is to always have a fallback/backup plan in any endeavor you take. no matter what.
this fool could’ve used half his savings and still have a good chance at getting rich if he knew what he was doing.
TheBigBopper
Banned
If tether holders cant redeem for tether, they will sell their coins for other crypto pairs, driving down prices across the market. Trading volume is so thin relative to market caps that a $5-10mm tether pump can increase btc price by 1.5%. If people can’t redeem for tether, think of what the reverse effect will be. It’s a house of cards.
But if you bought a coin using tether you aren't married to tether, you can just sell the coin into something else like BTC or Eth. If tether goes under that should only affect those holding actual tether coins. But maybe I'm missing something.
It will cause a mass panic
Oh well I'll just buy more on the dip. I still need to get into ICX and Ven.TheBigBopper
Banned
If $2b tether coins are maybe only 10% backed and everyone wants to cash out at once, they’ll cash out into eth or btc then use the base crypto to cash out into fiat. This amount of sell volume in a short amount of time will destroy the market.
people are saying tether is what's pumping btc price up , so if tether crashes ..it takes down part of btc price with it.
TheBigBopper
Banned
I’m not saying everyone should cash out now—maybe each tether really is backed by a US dollar—tether is owned by Bitfinex so maybe their dollar reserves are replenished with trading fees. Either way, this should be on everyone’s radar. I’ll be taking profits in the near term.
Why do you assume they'll all want to cash out into fiat all of a sudden. The coins they bought using tether still has the same value regardless as to what happens with tether.
For example if they bought BTC using tether, the value of BTC isn't relative to tether. If tether ceased to exist they could just sell it into fiat without selling it back into tether first. They could do that now. That goes for any coin. Just having a hard time understanding why anyone not holding tether coins would care.
But I know people are idiots and anything causes a panic, but whatever affect it has I doubt it'll be long term.
TheBigBopper
Banned
It’s all circular. If fake tether propped up the value of btc and other alts, the value of these coins would likely fall by whatever the inflated tether value is. The tether artificially pumps crypto value. It’s the same concept as the federal reserve bank monetary policy. Fake money is pumped into the market to purchase securities and inflate their value.
"Fake" tether was purchased with real money. It's no different than if they bought BTC with actual USD so I don't get the artificially inflated part of your argument. The people that used tether as a middle man can can still get the same money back cashing out without using tether as a middle man.
TheBigBopper
Banned
If you use tether on a crypto exchange, the person on the other side of the trade used artificially inflated crypto to purchase tether. People outside of America (they banned Americans from buying tether earlier this year, this is another red flag) can purchase tether directly from the tether company, but many question if in fact there are sufficient tether purchases to warrant the heavy issuance of the coin.
Read some articles on this. They probably do a better job of explaining this than I do.
zacharie101
Rookie
This video is a must watch. Don't fall for the Bs on CNBC about Cryptos