If we are in a bubble, and the market crashes, would Tether hold its 1:1 USD value on the exchanges?
For the sake of argument, please assume BTC crashes to $2K. Everyone moves their coins to USDT. You also cash out all your coins to Tether (USDT) on an exchange. Would Tether keep its USD value when you try to buy in at the bottom?
To illustrate with a concrete example, you sold 1 BTC at 20K to Tether at the top, BTC falls to $2K, does Tether value give you 10 BTCs at the bottom?
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np.reddit.com
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pbs.twimg.com
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Interested in this as well.
Will tether hold its value? Or gain or lose value???
Tether is a scam.
why the fuck not? the whole thing about tether is that it's 1:1 with the dollar
Interested in this as well.
Will tether hold its value? Or gain or lose value??
Tether will hold its value as long as people don't cash out simultaneously. It's the same way banks work.
Everything goes down when the bubble pops. Tethers terms conditions state that they are not liable to paying you out if shit goes haywire
>To illustrate with a concrete example, you sold 1 BTC at 20K to Tether at the top, BTC falls to $2K, does Tether value give you 10 BTCs at the bottom?
They'd be unbelievably lucky if that's how it works, as opposed to everyone trying to get actual USD. It supervenes upon people actually accepting Tether for bitcoin at that point. The tokens won't be worth much if everyone is heading towards the doors.
Wouldn't this make tether the most valuable coin... as all others are losing value
>Cashing out
>When the bubble crashes
Exchanges will be worrying about their own solvency. Customer withdrawals will be the least of their priorities.
Don't listen to this retard. Maybe he is not a retard and had jewish ancestry. The only shot you have for protecting yourself is using a fiat exchange
Tether keep the bubble alive, so if the bubble pops Tether value will be 0.
>you sold 1 BTC at 20K dollars at the top, BTC falls to $2K, does 20k give you 10 BTCs at the bottom?
That's how it works, but for some reason you guys want to play around with a literally fake dollar bill.
>Wouldn't this make tether the most valuable coin... as all others are losing value
It's only value at that point would come from it purportedly being 1:1 with the dollar, which probably isn't strictly true.
you don't actually believe this still do you? are you that new?
No it's not. It's 1:0, it's just enforced that it's 1:1 to make the system work
> he thinks Tether is backed by real USD
>laughingsluts.jpeg
would you pay more than 1 dollar for 1 tether? of course not. nobody will. would you pay less than a dollar for 1 tether? yes and so will every body until it's value goes up to 1 dollar. it works because everybody agrees that that's it's inherent value.
The absolute state of Veeky Forums
Shit is getting out of hand fast.
>he fell for the b8
sad if true
Look at these turbo normie. I refuse to believe someone is this retarded and detached from reality
Tether will be the reason the bubble pops
It will play a part.
It's just a matter of whether it will hold it's value of 1:1 on the way down.
this, amazing people think it's their safe place
who the fuck is going to want to buy your stupid IOU IOU dollars when BTC is crashing and buring
If BTC is going down and tether is holding still. I will. Then just rebuy btc when it' lower......
As more people lose faith in USDT it will become worth less than USD. As people lose faith in USDT they will withdraw their BTC from USDT exchanges and sell them on USD exchanges. USD exchanges will now have to absorb selling that USDT used to absorb causing the USD price to fall while USDT will have to increase their bids to attract the ever diminishing number of Bitcoin sellers still willing to sell for USDT. Watch the price difference between USD and USDT exchanges if it starts consistently increase it's time to gtfo.
hahaha refute me dumbfucks
oh that's right you can't, better hide behind your conspiracies
for get to tag you in my last r^
my heart can no longer take seeing their faces over and over and over and over and over
Im killing myself
Yes tether will hold 1:1 because it is 100% backed :)
As long as you can keep printing them out of thin air, why not.
What? You have no idea how supply and demand works.
This currency is backed by nothing that guarantees its worth $1. Once people realize that, they won't even want to pay you 10 cents for your Tether.
You even say as much yourself, you just fuck up your logic and pretend it will make the price rise to a dollar... when in fact it means it will sink to 0:
>would you pay less than a dollar for 1 tether? yes and so will every body
They're able to maintain its price at $1 in a climate where the price of BTC is rising, because as demand for Tether increases with a falling BTC, they can issue new Tethers to increase the supply and by extension reduce the demand/price back to $1. The problem with that is it then inflates the price of BTC, propping it up when it would naturally want to fall, creating a bubble. Then, when it finally does correct hard, the amount of Tethers that would have to be created to compensate for the flood of BTC money trying to hide out in Tether would leave Tether completely valueless once BTC begins to rise again and buy pressure falls for Tether.
This is a ponzi scheme, plain and simple. All ponzi schemes end in collapse.
>Tether owned by Finex
>Finex doesn't have a bank like say Kraken
>Only offshore accounts scattered all over
>Finex changes Tethers TOS. Basically states you can't cash out tether. The can't cash out meme is born
>Finex employees asked to prove the tether backing on Reddit
>CEO chimes in and shuts it all down(I'm not anti-Semitic kek)
The red flags are just too many
You can't still believe this? It says plainly in their terms of service its not backed... its not debatable, its fact that its not backed.
Here you go college boy
You no like 2d? 2d good and love you long time onichan
What guarantees that tether will stay at 1 USDT = 1 dollar? Is the peg to the dollar built into the blockchain somehow?
Here you go illiterate monkey.
>Being this retarded
Verizon tells me they give me unlimited data on my mobile. But if I perused the ToS, it states that I'm capped at 4GB/month
The USD isn't backed either
They advertise UNLIMITED but in reality it's 4GB. Same case with your fuckin picture, that's just marketing you mong
100% backed. Will always stay at 1 dollar. Smd
...
I'm not the other user so I'll tell you why you are still wrong:
It may be "backed by traditional currency"
But you are making the assumption that means USDT is redeemable for traditional currency. It does not.
>"There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money.
Have fun kids.
But if you time it right, it's still safe as btc is going down. Just not of the way back up.... right?
you fucking muppet. get your head out of your ass and do some research. here i'll help you start:
Because there is only a limited amount of Tether available on the exchange at the time of a crash? Why would it not become the most valuable coin as everyone want to get out of BTC at the same time?
Have fun holding your poopcoin down the drain. Gonna scoop up some 100 buck btc with my tether. Dumb fucks
Your fat neon colored hair mom should have aborted you and have your foetus flashed down the toilet like the arrogant fagot you are. I'm out.
Then of course the most worthless on the way back up
Depends on what's bringing BTC down. If its fraud investigations coming against Bitfinex/Tether, then no... it won't be safe even on the way down.
The gambit they're playing founds this entire rally on a moral hazard, and reeks of shady bullshit. All signs point to the warnings we've had about Bitfinex/Tether being proven true in the very near future, and its going to create a massive correction when that happens. Whether we're already in a correction and that's what finally highlights Tether's flaws, or an investigation is opened and that causes the correction I don't know, but this is a half billion dollar game of chicken we're playing right now thanks to Tether.
Half Trillion*
If you're on a tether exchange consider yourself fucked. The omni layer can freeze everything traded in tethers and coinbase will stop excepting transactions coming in because it will lose money from whale cashing out and the artifical inflated price of btc. This won't end with the bubble popping it will end dead in its tracks. Cash out now while you can.
Tether being equal to one dollar is an integral part of Satoshi's vision. It's literally baked in.
What if the bubbles pops due to the Bitcoin Cash being the real Bitcoin and miners dumping BTC and switching to BTC
This is my theory
Switching to BCH*
wtf are you talking about? they don't need to print new tethers when btc is falling but only when new money wants to buy btc. if there's no new money there's no need for more tether.
proof? that's right just more conspiracy bullshit posted with smug anime girls. lmao what a virgin loser.
why don't use ask them why they provided that statement instead of implying things?
I've wondered if we'll see that as well. It may take a couple weeks of reduced profits for miners, but with the difficulty level increasing on BTC maybe we see BCH start to take over in hash power.
It literally happens in 6 hours
Ya CME futures + the difficulty increase is going to get interesting.
This. If anyone reads the fine print of it all, they basically state that by buying tether, you are agreeing to let them run off with your money. This isn’t in their or your best interest, but IF it were to collapse, and you’re in tether, they are not legally obligated to give you shit.
The proof is all over the internet you lazy fagot. I won't do your research for you
A roger ver AMA is in 8 hours as well. You need to be all in on BCH ASAP
np.reddit.com
only company that even *might* have the money to match withdrawals would be coinbase.
Tether is just another altcoin. It means nothing. Bitfinex does not have $1 billion USD sitting in a Tether vault
>one AMA on a subreddit that's already redpilled on bitcoin will change the price
oxygen thief
lol this is after the difficulty adjustment bro
he is just going to confirm BCH is the real BTC one more time and point to how fucked btc is with the new difficulty. Then his answers will spread over social media awakening more dumbfucks
It's all building momentum for the bubble to pop on CME launch
CME launched like 9 hours ago
Lol u fool
CME launches in 14 hours
>all the cynicism ITT
Bitifinex's daily volume has been over 1B USD for a pretty long while. The initial batch of Tether USD was of mere 150k units, something they could easily provide solvency with their daily fees alone.
From that point onwards, they kept printing Tether, authorizing it but not issuing it until they had the equivalent amount in dollars from client's deposits and their own investments.
With the growing interest on Tether and its adoption by every decent exchange, it's perfectly tenable that there's actually a billion or more invested in it
This
I don't see why people have such a hard time thinking they don't have the dollars. The amount of profit they make from fees is insane
It's already trading u fool
not sure if dumb or just retarded
>cmegroup.com
>their daily volume
for all we know their "daily volume" is as fake as the tethers people supposedly hold on their exchange and by that I'm not talking about that tethers are a fraud, they are, but that the exchange doesn't even give a shit about holding their user's tethers in their exchange wallet, and just sells all deposited tethers by their users on other exchanges.
pic related
They could have gotten enough to back tether, yes. But banks won't touch them apart from trustnodes.com
And they hid the bitfinex-tether relationship for as long as they could.
Wells fargo and Taiwanese banks noped the fuck out and won't touch them with a ten foot pole and you can probably guess why.
Oh and they got subpoenaed recently and they will not stand up to scrutiny at all. pbs.twimg.com
Lol you guys don't get it :)
Tether is essentially counterfeiting since there are no reserves. They do not even have an obligation to exchange tether for fiat. Is tether propping up bitcoin? Yup, and killing USD at the same time.
Tether is FUNCTIONING like we expect a dollar to function, it's cashing out without cashing out.
If bitcoin price crashes? How will it crash, it's impossible ^_^ there are now derivatives trading on bitcoin, you can use futures to go long or short without owning any. If bitcoin loses too much value, the exchanges can go down ^_^ then futures continue to trade on the price locked in since nobody can sell, and people then value bitcoin based on futures, and futures on current bitcoin price ^_^
But btc is deflationary
Byebye us dollar
Well it is. By nukes.
Oh shit that last image
>tether doesn't lose value
>bitcoin loses value and market cap
>tether creators drop 1 usd = 1 usdt rule, it's now 1 usdt >= 1 usd
>tether becomes new bitcoin
Are you saying derivatives and futures make an asset immune to crashing? What are you smoking? Give me some!
>tfw too intelligent for a skull
How the FUCK doesn't Veeky Forums realise that Bitfinex and Tether are committing fraud and sooner or later it's going to at least temporarily fuck everyone
No retard
Its counterfeiting liquid currency to buy another currency which isn't liquid, then trading derivatives on the non liquid asset propped by counterfieting.
What do you think will happen
ok, but actually think for moment how that is being supposedly maintained.
...
> what is wash trading