First they claimed a 1 to 1 match dollar to Tether, then now only 3%. If 62,000 tethers appear in the market and is uses to buy 1 bitcoin. Now the print on the tape is Bitcoin bought for 62K USD. and thats what the media will report, ie Bitcoin breaks new price barrier, 62K USD a large portion of bitcoin purchases are done via Tethers appearing on exchanges and buying up more BTC. last Friday Tether provides its report which is light in details such as what makes up the Commercial paper etc. and the shocker is they really only hold 3 cents USD to every “1 tether dollar” the rest filler. For all we know is all that commercial paper is backed by Bitcoin Why has this not moved the markets much or gain much media attention?
Because most people, myself included, have no clue what that all means. A BTC is a BTC. What does "tether" have to do with any of it? Does a tether somehow make a BTC worth less than a BTC? Crypto mumbojumbo.
Simple, how do you pump bitcoin prices up, create dollars out of thin air to put demand pressure on Bitcoin causing the price to skyrocket. Whole thing smells like some super elaborate ponzi.
Details are in https://www.coindesk.com/tether-first-reserve-composition-report-usdt Money in commercial paper and fiduciary deposits (bank deposits) are generally fairly low risk. https://www.moneyrates.com/investment/commercial-paper.htm My concern is Tether appears unregulated, so they could be saying/doing just about anything.
So if I buy 1 BTC at $50K, what does a "tether" do to it? Is a tether some sort of transaction thing to make BTC work?
They say a lot but why are they not reporting on the so called “Commercial paper” who are the issuers, what backs the commercial paper etc. There is very little details provided by Tether LLC. Cant be called a stablecoin if 1 tether is just 3 USD and the rest high risk unknown holdings.
The tether company acts as the role of fed. It can create as much tether as it like, and use that to buy btc.
Tether is a free money printing machine. I don't understand why people still debate about it. They print their cryptocurrency to buy another cryptocurrencies. As soon as it stays like that no one cares. Now try to buy dollars with tethers at any Forex counter and you will see the value of it. Monopoly money is fine if you play the crypto world,their players don't care if it is backed by anything as long as they can watch their price action charts go up and down.
I see no harm in Tether printing anything out of thin air. If our government can do it, then so should we. The only difference is I don't bitch about it