Can someone explain tether/bitfinex controversy?

They aren't propping up bitcoin with Tether, they do not have that ability do not listen to these retards. They are essentially giving their users monopoly money whenever they sell their bitcoin/alts for usdt. Mt. Gox incoming

Oh I see, so they're essentially too big to fail, but the govt isnt around to bail them out, hah, that's interesting. But what if they are able to invest in crypto like eth or back into bitcoin and hedge against price drop effectively, the whole charade can continue?

1. Print USDT
2. Pour into bitfinex, lend out for permalong BTC
3. Sellers of BTC pour USDT back to bitfinex to get juicy >30% APY interest lending out
4. Got lent out to permalong BTC again, rinse and repeat

Each USDT can get into this cycle many times. So each printing has a way bigger impact than its nominal amount. Look at Bitfinex margin market which is many hundred millions, but the bitfinex wallet is almost always empty to see how this works.

it says what it says

"futures"

aka 2 people will agree to buy/sell their bitcoin at a certain time in the future for an agreed price

I don't think you understand how leverage works. Futures don't work like that.

hyperinflation within hyperinflation

but people are stupid though and are lead to believe that this is a bad thing for Bitcoin

while in fact it's actually literally the complete opposite

this Tether thing is only destroying the U.S dollar faster

You don't know how leverage works user...

You can't leverage long more bitcoins than there are shorted because you wouldn't get anything. You can't just GET bitcoins from people that aren't selling.

I.E. If I take 1BN USD and leverage x100 I can't literally buy 60% of bitcoins because no one is selling that many bitcoins and the price would become absolutely astronomical as soon as even 10% of bitcoins were bought. This tether thing may be real but it's completely sustainable as long as new normies buy in at the higher prices.

See pic.

Normies aren't using finnex , they are using coinbase

It will sustain itself as long as more people join the market!
>what is a pyramid scheme

1.) Tether & Bitfinex are owned by the same people.

2.) Tether in theory is a way to trade Bitcoins for USD without having to move your money off exchanges each time. In theory, it's a great idea. By the way, Tether = "USDT"

3.) Tether is supposed to be valued at $1.00 USD. The owners of Tether in theory would accept wire transfers from whales and create Tether for them, at a rate of 1 USDT to 1 USD.

4.) Tether was supposed to provide frequent audits of their cash reserves, to prove that they indeed had exactly one dollar for each Tether in existence. There have been no audits at all, and very little information exists about Tether at all. We have no idea where their bank is, or if they even HAVE a bank.

5.) The drama currently unfolding is that Tether has ZERO proof that their USDT is backed up by any real dollars, yet they keep creating more USDT.

6.) New USDT appears on places like Bitfinex (which Tether owns!) and starts buying more BTC with it. People see this activity, and think that real USD is buying BTC. This starts to raise the price of BTC.

The theory is that Tether is printing USDT with zero backing of USD. Literally printing money. They have convinced a lot of people that 1 USDT is worth 1 USD, but there is ZERO evidence after years of promises.

If this is true, then the price of Bitcoin is probably being pumped up by Tether, as there are well over 700,000,000 Tethers in existence, which can then be used in margin trading on Bitfinex to start fucking with the market.

At some point, people will start trying to cash out and find that there is a huge gap in what the market says BTC is worth and what they can actually get when trying to sell their BTC.

Once the jig is up, Bitcoin will crash HARD. No amount of normie grandma cash will be able to overcome the bank run that will happen once people realize what's going on. Tether has been doing this shit since BTC 1k.

They did it like laundry room providers. They created plastic coins (USDT) and sold them for a dollar a piece. Then they promised to keep the money in a safe so the new "currency" is backed by USD. Instead they spent the money for hookers and coke and didn't provide do an audit since April 2017. Because they got greedy they simply created about 750 million coins for themselves to buy Bitcoin and then sell it at a higher price which inflated the price of Bitcoin. Once people find out they are going to find out they have no right to exchange their plastic coins for real money. There's a clause in the contract which says there are no guarantees for being able to exchange the coin for any property. So people have to sell their worthless coins to somebody but there will be nobody who wants to buy it. This will crash not only the price of USDT but also the price of all cryptocurrencies because the people responsible are also the people behind the biggest exchanges and a lot of people will simply try to get their money out of the cryptocurrency market into fiat, which by then will be nearly impossible because all exchanges will simply shut down and tell their customers they lost the key to the safe.

LINK shills are the worst type of people

like this guy, he's pretty dumb

>Implying what I said isn't true

Good luck dude, hope you don't have your life savings in crypto. I love the tech but there is clear fraud going on.

post screen caps of your shorts, faggot

Interesting posts, double Fiat ftw. Should I park my savings in chan coin for stability?

BTC market cap is over 180bil. If you think 700mil of tether is even a tiny influence you are absolutely deluded.

maybe, I made about $500 off ChanCoin that last time it spiked

easiest coin to day trade

only Veeky Forums knows about it

and Veeky Forums is full of retards

>Should I park my savings in chan coin for stability?

I would only use a part of my savings to invest in highly speculative investment vehicles and try to diversify my portfolio. You should also have 10 to 15% of your portfolio in precious metals.

This, its only going to destroy the bitfinex market and perhaps a short term negative reflection on price as a whole. Bitfinex is just gearing up for another Mt.Gox taking all their customers coins for their "secure and backed" USDT

> Cant use bitfinex cause of this shit
> Cant use Bittrex cause of their shady shit
> Cant use Coinbase cause apprently they fucked up somehow

is there anyone we can trust Veeky Forums?

What did bittrex do?

I have no fucking idea, all I know is whenver I ask about it people tell me to stay away because they pull shady shit like "losing" your coin and shit

Can somebody please link the tether wash trade infographic?

Bitstamp.

When this conspiracy leaks into the mainstream there will be blood on the streets.

It's weekly/daily FUD tinfoil hat conspiracy. Ignore. Your Veeky Forums experience will be better if you filter out tether.

Dumbfag question, but is my USD balance on buttfinex actually USDT?