Please enlighten me Veeky Forums

Please enlighten me Veeky Forums
How the fuck can USDT be more than $1?
I can understand it to be less than 1 dollar because the obvious exit scam risk.
I can understand Crypto being worth less on USDT based exchanges because of the obvious exchange run risk, however this price should not reflect in less USDT per crypto-coin.
From what I gathered I assume people buy USDT for more than $1 because of arbitrage potential to USDT based exchanges, but why is the price on these exchanges also lower in USDT?

Demand > supply

But why? Supply is huge, USDT's marketcap has grown more than BTC's

Every coin is getting more expensive and at the same time more people want MORE of them. Demand > supply

Why would there be more demand for USDT when crypto's go up? The opposite should be true

kek you wish, tethers 24h volume hit 2.4b when it was 800m

now its 24h volume is 1.5b @ 1b

its all bots there never was muh supply or demand

Look at and research why the Korean Won shifts in price daily.

Yes, I expect it to be only bots, but it still doesn't explain why crypto should be cheaper on USDT based exchanges based on USDT? It would only make sense to me if crypto would be less fiat, but more USDT.

usd =! usdt

theres your answer user

The important thing to remember is that this is your COPE and that you will never make it nocoiner.

But it should be USD>=USDT, the opposite is happening.

you cant actually cash a lot of fiat out of crypto, despite what people tell you there is a withdrawal limit

You're thinking about it wrong, when tether is say, $1.10, it is not really worth more. It is only used to buy crypto, so it really just means that crypto is sold at a discount on exchanges that don't use fiat. Because it it going to crash any day.

So if bitcoin is $9000 on bitfinex and $10000 on gdax, $1.10 of tether buys what 1.00 USD buys on gdax.

Yeah I thought that before as well. However it would make much more sense if BTC would be $11000 (in USDT) on bittrex and $10000 on GDAX.

Why should you be able to buy more bitcoin with a fake token than a dollar though?

That's exactly my question. Bittrex BTC value is consistently about 10% cheaper in USDT than on GDAX in USD

Also check'd

This might have to do with it yes, people are expecting a correction unrelated to bitfinex and are storing their assets massively in USDT to safe on taxes.

But no one really buys tether and it's only used to buy crypto, I'm saying if your tether is "worth" 10% more than a dollar but you can only spend it on an exchange like bitfinex that sells crypto at a 10% premium, it's not really worth more than a dollar.

Yes I think you are right, and that it's just because of the massive amount of arbitrage bots that the market reflects these prices "mirrored" so to say

Tether is just a convenient way to allow daytraders to trade the BTC/USD pair on exchanges that aren't equipped to deal with real fiat. It's not evil, it serves its purpose, but you shouldn't hold it for long periods of time just in case something does go south with Bitfinex. Regardless of whether the BTC cost is lower/higher on the USDT-only exchanges, if BTC dips or rises on GDAX it'll dip or rise the same percentage on the USDT exchanges. Just use it for daytrading and look at the percentages only.

When not enough tethers are printed it inflates.

its OP asking a part of a question where you need to see the whole picture to understand the answer

but really what theyre doing is highly illegal even if all those 1billion $$ is backed by usd

were fucked either way

If it were actually backed by fiat it would be a really good idea that would stabilize the markets.

Wait, what's stopping me buying 10,000 USDT or $10,000, then selling them back at the market rate of $1.07?

Looking at a clean $700 profit

Repeat forever

Because you would have to buy them at a rate of 1.07

they just print more tethers if it goes beyond 1usd, if it goes below 1 usd they buy more btc

also you need people to buy those at 1.07$

A market buy or sell of $10k tether on kraken usdt\usd exchange (the only one) would wreck the price because there's no liquidity in that market, which there would be if it wasn't a scam.

>someone is this stupid

After thinking about it a bit more about it.
Yes you are absolutely right. The prices get reflected like this because when doing arbitrage it means you are moving USDT to bittrex, and withdrawing BTC to GDAX.
Thanks Veeky Forums, I'm enlightened now

But 1 Tether is backed with 1 dollar, given to Tether by me, surely?

I want to buy directly from Tether, and have them mint it for me directly