TETHER

>Own *Magic Printer*
>Print magic USDT tokens
>Buy Bitcoin with USDT tokens
>Idiots sell their Bitcoin for USDT tokens on the premise that USDT are a "stable coin" that will always be valued & exchangeable at 1 USD because they backed by 1:1 USD reserves
>Why?
>They trust Tether
>Dumb fucks
>Owner of *Magic Printer* now sells Bitcoins for real USD
>Print more magic USDT tokens
>Buy more Bitcoins
>Sell more Bitcoins for real USD
>Repeat times x2.2 billlion

Turning the handle the direction indicated will turn $5 into a shit piece of paper with 5$ written on it you fucking Eurofag.

t. Anglo master race

...

take me back

>tether now owns $2.2 billion worth of Bitcoin or real USD
>oh no wait, much much more. The price of Bitcoin has fucking skyrocketed since they first started printing tether
I don't see the problem. They're certainly solvent.

Bag holder:
>bu-but muh stable coin!
/comfy/ Big Brain on the benches:
>Why is Tether a stable coin and why should you expect it to be valued at 1 USD into the future?
Bag holder:
>sh-shut up shill!

You adressed literally nothing I said. Good job.

no. sub 70 IQ burger confirmed

>th-they're solvent!
Tether USDT will be valued at 1 USD into the future because why? Under what premise?

Because of arbitrage. You probably don't know what that is.

Because they said so and they can almost certainly make more money continuing what they're doing than not continuing it.

>>Print more magic USDT tokens
>>Buy more Bitcoins
>>Sell more Bitcoins for real USD
>>Repeat times x2.2 billlion

So they DO have $2.2billion in the bank. Never thought of it this way. :^)

But seriously, why everyone is OK with tether acting like the federal reserve is beyond me, other than they're shortsighted and are just happy to see the numbers on graphs go up, even if it's artificial

>bitcoin worth 20k?
>lets print its equivalent in magic beans!
>btc drops to 10k
>fug

Under the premise that it's exchangable for exactly 1 dollar brainlet. Until it isn't of course :^) That's when this board goes pink.

The question isn't whether it will stop being honoured but when it will stop.

Until then exchanges get free BTC pumping up the price. This shit is older than jews themselves.

>The question isn't whether it will stop being honoured but when it will stop
It's not truly being honored now. Compared to how many people have held tether in the past and present, the number of them who are "fully verified" by tether and in countries where they operate - conditions that tether has for them to redeem for USD - is infinitesimal

>the number of them who are "fully verified" by tether and in countries where they operate - conditions that tether has for them to redeem for USD - is infinitesimal
Who cares? Do you even understand how arbitrage works?

If you are able to use tether and are lucky enough not to hold any and cash out to fiat before the market corrects, then there's nothing to worry about.

If you're a long term holder or put significant value into tether to weather a correction and then it crashes, enjoy losing literally everything

It will run as long as exchanges let you buy bitcoin with it at 1:1 with USD price. The bubble lies within BTC price.

That's cute but they didn't print that many while btc was that high. Overall they have to be up massively if they held on to their coins. If they sold for usd it's not even a question.

You don't seem to understand why Tether closely retains its price to the dollar on every exchange. This is literally the answer to your question. The other user is full of shit, by the way, he uses a conspiracy theory ("all exchanges locked the bitcoin price") as a substitute for his lack of undestanding.

oh sweetie