>Tether admits in court to investing some of its reserves in bitcoin
>(...) For instance, the market has learned that only 74% of outstanding Tether tokens were backed by cash held in its reserve.
So, the one stablecoin that is supposed to be the one thing that protects us from the volatility of the market is investing in the same thing that it's supposed to be protecting us against? what the fuck is going on here?
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>what the fuck is going on here?
the largest ponzi scheme in human existence
tethers trolling tethers
it needs bitcoin to send transactions on the omni network so they bought it. literally a nothing burger.
Fucking THIS. Are we just all gonna pretend this doesn’t fucking matter? What the fuck is going on srs? Why hasn’t the market tanked?
>Print tether from thin air
>Buy bitcoin with it
>Sell bitcoin for dollars to back tether
kek, it's fucking genius
we all know this ponzi will collapse sooner or later, and when it does, crypto will unironically be ogre. no one will fall for this dead tech meme again.
Except if Bitcoin tanks and now you have less dollars
this is good for bitcoin
I had 0 to start with
Are you daft
>if bitcoin tanks
Just print more tethers to pump it back up
It makes sense though, right? Like What kind of profit model does Tether have? They gotta make money from somewhere.
There are still people surprised that Tether is the shit that glues this whole fraud together kek
they place that bitcoin on bitmex and short/long with leverage
true story
>be tether
>offer traders a way to get (((fiat))) exposure without having to convert to (((fiat)))
>get harassed by mouth-breathing retards and the (((NYAG)))
Heh, perfect example of fiat fuckery.
This is pretty much what the central banks do.
If you think the folks at bitfinex did this for your benefit, you are the mouth breathing retard
Tether has the second highest volume. Every time bitcoin tanks a couple million tethers get printed to buy it up again. It's fucking hilarious. Tether owns bitcoin. Tether OWNS cryptocurrencies
Based
They realize fait is worthless so may as well get BTC out of it
Just like China building dams and bridges and shti with ponzi finance, default on the debt who gives a fuck now you have a whole bunch of useful infrastructure
You read the transcripts? The poor bastards at bitfinex arent even doing it just for profit anymore. They do it because they HAVE to keep printing more and more and more usdt just to prop up the price. It’s completely mutated into a giant rope around their necks that they have no choice but to keep coiling, or it all collapses around them.
The recent transcripts show they're going to fight/appeal every court order and even move to have the case dismissed. Fight tooth and nail to the end. The recent LEO sale sounds exactly like what Mt.Gox did when they were insolvent. I love this carnival market
This market is irrational, get used to it.
But it's partly due to lack of information around the scope of it.
But idk, it's weird.
Even weirder that Tether is still 1:1.
Why not just hold fiat? You don't need crypto to put your money in a bonfire. Just needlessly complicates things. There is no benefit to it whatsoever, only harm.
The only purpose of Tether now is to keep folks from cashing out, while the exchanges and miners drain every last dollar from the system. Those lawyers fighting need to be paid in cash, they sure as hell arent taking their legal fees in fucking USDT topkek.
NYAG: “Sirs if you believe usdt is solid, will you be willing to be paid in tethers?”
what's the difference between Tether and the Federal Reserve's QE programs again? it's pegged to an unbacked fiat currency in the first place. the main point with all these fiat coins is that when the music stops no one actually wants Tether or US$. they want Bitcoin
It could be like this desu.
They really don't want to disclose any information about their movements of funds within Bfx/Tether, that's "a bit" worrisome.
how much btc for your delusion sir?
I remember when bitfinex claimed the reserves were all fully verified and audited. Those were the days. And then that fucking fake letter with the dodgy signature, jesus.
None, except the enormous precedent and military backing the fed
If you think the two are even remotely comparable you’re a fucking retard.
Tether is just a couple nerds in the basement fucking around. The federal reserve literally owns and rules the world
One is a massively complex system deeply ingrained in world geopolitics and defended by the full might of the military industrial complex and the strongest military force the world has ever seen.
The other is a dodgy monopoly paper money system designed to fool literal retards and can’t even stand up to scrutiny when questioned by a literal who like the new york attorney general.
whatever has purchasing power. you can decide
>precedent
only 40 years since they removed the backing (gold). only 10 years since they embarked on QE. how much longer?
>military
>use our imaginary (((money))) or we will kill you, goy
it is a strong argument, but there's no fundamental difference. they're both just issuances of credit which are accepted by market participants out of convenience
>demand for Tether rises
>print Tether to devaluate its price
>demand for Tether sinks
>buy BTC to raise price
nothing wrong with this, how else would they stabilize the 1-1 dollar ratio? meme magic alone?
They can stabilize is by simply offering an easy way to cash 1usdt for 1usd from their ((((((reserves))))) which btw they just admited does not fucking exist
i give zero fucks about tether, of course it is monopoly money because it is pegged to one. but people who want to use tether are free to do so. my point is that people who use tether to hedge their bitcoin positions do NOT want USD.
guaranteeing a 1-1 ratio on the dollar gives them no power to lower the price, it only sets a minimum
as soon as the price of tether rises, they have to print more to regulate the price
this is dumb, they print only when they get an influx of usd. it is bad that they're not 100% backed, but compared with the 10% employed by fractional reserve normie banks 75% is as safe as it gets. there's not going to be a run on tether as a result of this. there is no collective fear
Duh cuz BTC is way more valuable than USD in the longterm. Tether wants to maximize profits so it’s only natural they buy BTC at dips and then sell it back for USD at peaks
>ce, the market has learned that only 74% of outstanding Tether tokens were backed by cash
>n January 17, 2019, the Fed updated its reserve requirement table. It required that all banks with more than $124.2 million on deposit maintain a reserve of 10 percent of deposits.
what so tether has 7.4x more in reserves than regualr banks are required to have? WTF
they get "an influx of dollars" whenever they sell tether to the market (for dollars)
however their value proposition is that the ratio for dollar remains constant, and they can correct the price of tether by reducing the supply of tethers in circulation, *by buying tether for bitcoin*
in order to do this, they obviously need bitcoin
this really shouldnt be that hard to understand m8
that's not how it works. the tethers are just representations of dollars, issued and deleted accordingly. their fluctuating value when diverging from $1.00 is a representation of trust and demand, it isn't engineered by tether
da heck you mean they are deleted accordingly? are you dense? they have to buy them back and remove them from circulation to deflate the price, not just delete them from... from what even.