The world's most used crypto, Tether explained

And there is a reason for that. Why would any rational person person short something that can be manipulated with fake fiat aka tethers.

 

Manipulation?

https://elitetrader.com/et/threads/...e-a-store-of-value.355253/page-2#post-5309163

 

we have been around this block few times.

let’s see how it turns out.

 

"Been around the block...." What does that even mean?

"seeing how it turns out?"

Dude, check out the price of GME and others. They're down big time, when pre-market GME was at $500

I can't buy GME, only people who own it can sell it. You're vocal about Tether, have some courage and take a position on this situation, RedDuke

waiting around, been around the block don't mean sh*t when people who bought yesterday are losing their money on a rigged one-way market

 

I meant us debating merit of tether.

I am fully automated algo trader. I only trade things I can understand and measure. BTC is not one of them and too risky.

 

So any cryptofan trying to explain Tether suddenly not printing for 40 days? Before that it was 1 B per week, suddenly there is no interest in buying BTC via Tether?

 

I'll take a guess. New demand for Tether has been curtailed by the Chinese govt crackdown on cryptos usage of business entities

It's not related to bitcoin in the same way you're thinking of USDT/BTC supply & demand dynamics

There's enough USDT in circulation. One very important metric is that there hasn't been any significant redemption. Would you like to offer an explanation of why $62B of Tether has not decreased?

My guess is that everyone's happy to hold Tether instead of fiat and earn high yields on a staking or defi platform rather than 1-2% APY on fiat

Over 95% of Tether are not on exchanges which would be the major source of redemption of Tether to fiat

 

Yield needs to come from somewhere, there are no such thing as free lunch. They might be happy, until 1 day they wake up and Tethers becomes worthless. I'll stick to "pathetic" fiat.

 

Just because China is a bit off of the crypto wagon that doesn't mean other countries wouldn't still want to invest in BTC, thus they still need Tether (this was never a logical explanation, but let's go with it.)

I think USDC taking over the role of Tether is a more likely explanation, although the switch should have been more gradual.

Because it is pretty much impossible to redeem it at the issuer, thus no need to burn it.

Most of Tether is probably tied down in DeFi contracts and such, those may have a lock down period, I am not sure. But again, Bitfinance is legally not obligated to redeem Tether.

 

And this simple fact somehow does not scare brave souls who hold it for high yield, makes one wonder ....