Federal Investigators Probe Cryptocurrency Firm Tether

USDT represents about 70% of daily volume, the last time I checked. Another very important factor is fake money have no fear. Any other asset on the face of the planet is traded in fiat issues by central banks. Crypto is traded in fake money aka Tethers where 4 people can just push a button and create another billion.

Think about it 4 people with shady background can create billions of dollars with 0 oversight. Let this sink in.

Remove Tether and allow crypto to be traded in fiat or fully audited stable coins, and we will know the real market price of BTC. The real price might shock many

 

Very simple, a hedge. What if collapse does not come, I will then profit from long. If collapse does happen I will buy at steep discount.

I have no doubt that blockchain is the future. It is just the current cycle is mostly based on fraud.

There might be a day in the future where a president is elected on block chain, and laws are passed by citizens voting on blockchain much sooner without election cycles. The future is very bright once fraud is reduced to minimal.

 

it has everything to do with BTC and other cryptos. Just look at volume, it is mostly USDT. Remove it and house of cards will collapse.

 

A stable coin is a stable coin. It is just a digital representation of Fiat money. There is nothing magical or special about tether. If tether didn’t exist, then crypto trading would just migrate to another stable coin.

Do you have an explanation as to why bitcoin would crash if tether is a fraud other than the fact that a lot of the trading is still in tether pairs?

 

It seems quite simple to me. If you are tether and want to buy a bitcoin you print 69k of tether and buy a bitcoin. If you are proven a fraud you cannot do that. Tether is proping up bitcoin with nothing but a printing press.

 

FOS - A hedge is having one trade against another. Betting long vs a collapse is not that.

Gamblers use that rationale saying I bet against my team but I weally weally want them to win. Riiiiiiight.

Fraud, of whatever kind, is always with us. Using cash, cash equivalents including now crypto.

 

By that same logic, the Federal Reserve is propping up the US dollar! The FED will actually have to print dollars just to pay the interest expense in the not too distant future.

I think we need to highlight what John said. A huge chunk of USDT is locked up in smart contracts or lost. This means there will likely never be a "bank run". At a real bank, we saw how a huge percentage of depositors moved over $30B in one day, and that continued into the next day. This was a legitimate bank run.

Keep in mind, with USDT, only certain participants can "redeem". So any hint of USDT imploding means that everyone sells USDT for something else. That something else is likely bitcoin, so bitcoin goes to the moon. Then these exchanges have a shit ton of USDT, but Tether Holdings, the company behind USDT, easily have reserves for these since its not like 90% will be sold. The market cap of USDT is not going to $20B from $120B. If it drops by $10B, they can easily sells US treasuries to meet this, and once again, this is only for the qualified partners.

The only way I see USDT going down is via government enforcement, and as I said, this would be a huge loss for the government in terms of losing easy access to gathering information, and having to sell off all their assets. But there will never be a "bank run" story on USDT. Its the real banks that need to worry because of how easy it is for customers to move out all their deposits. The very structure of USDT means that "redemptions" will not take it down.

But would I hold a large sum of money in USDT? Or course not. Its a centralized blockchain that allows for the custodian to kill any addresses they are told to. Its like US dollars. They are shit for using as savings, but incredibly important as the lubrication for global finance.

 

Here is a question that people that believe in this stupid conspiracy can’t answer, why would tether do this?

Tethers business model is to take real money and give out a tether token that represents that money. Said money is then invested in things like treasuries and they earn the interest on those treasuries and pay nothing. It’s a great business.

Now let’s think about what happens in this fantasy land… If just prints tokens, and doesn’t take in any money to back those tokens, then it has no money to invest. It would make no money off of those fake tether tokens since no real money was taken in and invested. So why would they do this?

 

That's the answer. You print tether to buy real money. Why wouldn't you do this. Now the sucker has tokens and you have real money. If tether is proven a fraud, who has the money and who is holding the bag?