>Tether exists >Bitcoin starts to dip hard >People sell their Bitcoins for USDT on exchanges >Tether sells those Bitcoins for real US Dollars >Tether uses those US Dollars earned in the dip to print more USDT >Price "raises same day as Tether printing 48% of the time" because price almost always rises after a steep decline
Has anyone even stopped to think about this logically?
Also at this point Tether FUD is priced in the market, so even if they didnt have matching funds I doubt anything would happen more than another year 10% dip
my dude lets not try to disprove it or something, because we wont change the market lets just wait for the 6th feb. and then when its actually disproven then you can start be happy again
Evan Rivera
wew on the id.
Leo Rogers
if tether were in real trouble you would see a huge price discrepancy between the price of BTC in dollars and the price of BTC in tether on exchanges.
until i see BTC trading for $500 on coinbase and $50,000 in USDT on bittrex i'm as sure as i can be that crypto will hit a multi trillion dollar market cap before the year is over.
Jaxson Hughes
This is getting desperate, and frankly, just sad. The Tether FUD has barely started to be factored in. The FUD will remain until they have an audit, your stupid fucking thought experiments don't prove shit.
The U.S. Treasury is also holding a hearing on virtual currencies and the role of U.S Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) on 6th February. This "open session" will be witnessed by Jay Clayton, chairman of the SEC, and J. Christopher Giancarlo, chairman of the CFTC.
Tyler Cox
Please someone disprove this logic
Levi Nguyen
>Tether uses those US Dollars earned in the dip to print more USDT
"ses these US dollars"
What do you mean by "uses", throws onto a big fucking pile that they just ignore while they absolutely refuse to be audited? Despite being an utterly shady cayman islands operation with a secret link to the biggest BTC exchange?
Proof would be an audit. Something they absolutely refuse to have.
You gullible motherfucker.
Nicholas Lopez
>until i see BTC trading for $500 on coinbase and $50,000 in USDT on bittrex i'm as sure as i can be that crypto will hit a multi trillion dollar market cap before the year is over. Clearly you have strick mathematical criteria and a well thought out theory.
Dominic Martinez
Then why do you keep trying to get people to?
Brandon Sullivan
OP there's nothing to worry about, just look at pic
Brody Lee
Is this the power of retarded brainlets?
They get USD for SELLING the Bitcoin people trade for USDT when they panic sell
Then they have real US Dollars they can use to mint more USDT (Tether)
Fucking serious man? Is this the level of reading comprehension on biz?
Jordan Thomas
Because I want to know if my Hypothesis has any holes in it, because if not we can put a lid on this USDT mega FUD thats screwing up the whole market
Brody Thomas
Tether has X USDT valued at Y dollars. People sell their BTC for USDT, driving Tether price up. Since Tether is pegged at $1, they print more USDT.
So far so good. Now say people sell their Tethers for bitcoin. This would drive the price down. To bring it up to $1 they would have to destroy some USDT?
Please explain to me this situation sirs
Gavin Foster
Also >what is float They use those dollars and likely would buy conservative investments to make 3-5% on the money while holding it in reserves for Tether holders. Much like a bank would
Jacob Perry
I dont think they print to stabilize the price.
They stabilize the price because market sentiment values USDT at $1, proven by their reserves.
So the only thing that matters is they have a 1:1 USD/USDT ratio in their banks
My theory is they print millions of Tether when they generate enough in new dollars after enough people trade their BTC to USDT
Jaxon Turner
tell me more about this "use their real dollars to print USDT process" and what part of it requires US dollars if they can actively refuse to have anyone check their books without repercussion.
oh wait, you trust them to do the financially ethical thing. this cayman island operation masked in secrecy.
Cameron Miller
that's it putting all my crypto into tether right now. get fucked mr. bear
Henry Lee
What you call "logic" is just a what if scenario.
Here's another one: > 1. Tether says "trust me this isn't fraudulent". > 2. Dumbasses trade BTC for fake dollars. > 3. Now Bitfinex/Tether Inc just got free BTC > 4. Process repeats, which drives up BTC price. > 5. Eventually a sufficient fraction of Tether holders try to cash out their investment. Tether tanks. > 7. Artificially inflated BTC tanks. > 8. People get scared, massive selloff > 9. Coinbase and other exit ramps can't keep up. > 10. Apocalypse.
Point is, for step 5, "a sufficient fraction" gets smaller the longer this game goes on.
Without a credible audit, we have to prepare for the worst. You're original story is wishful thinking until proven otherwise.
