'But Mr. Krug, at Pantera Capital, said that if Tether were really being used by investors, they would probably also want to buy new Tether when the markets were going up, which has not been the case. Also, they would not always want it in exact increments of $100 million, as has been the case.<p>“After you see this enough times, you just start to wonder what’s really going on here,” Mr. Krug said.'<p>I'd listen to the folks at Pantera, they are pretty sharp.
The article links to tetherreport.com<p>> <i>We vary N from 1 to 24 hours and examine the p-values. [.....] there are a number of periods where the p-values are significantly below 0.05 and we reject the null hypothesis for those periods.</i><p>Is it p-hacking to vary N and find low p-values? If its not p-hacking, but a valid analysis with predictive power, then wouldn't it make a good trading strategy to watch the tether wallet and buy btc whenever new issuance happens?
"Long before news of the subpoena, Bitfinex, which is believed to host more trading than any other Bitcoin exchange in the world, had gained a reputation for a lack of transparency and a confusing structure, with European executives, offices in Asia and registration in the Caribbean."<p>Oh boy this sounds like the banking system I was hoping cryptocurrencies would supersede...
> Also, they would not always want it in exact increments of $100 million, as has been the case.<p>Not to question the Tether story but I don't understand this line of argument. What is the problem with exact increments?<p>Sure, the tokens have to be issued only if the issuing conditions are met. But given the number of hacks, wouldn't people want to use the issuing account sparingly? You know, use the issuing account to issue tokens in fixed increments to build up reserves. The move these reserves to be held in another account.
If tether pops, what happens?<p>Do people try to cash out immediately or do they flock to the "stable" coins like BTC or ETH?<p>To my knowledge the only thing you can trade tether for is other cryptocurrencies.
Enough of this already...<p>If Tether doesn't have the funds then its a lot like someone borrowed 2Billion to buy crypto and can't pay it back.<p>Bitfinex will die, tether will die (just like other scam currencies like Bitconnect) but the market will come back after a correction.
Tether's market cap is around $2b... the crypto market as a whole clocks in at over $500b right now... what kind of effect could Tether really have, beyond the inevitable panic that will ensue?
Reposting from another thread:<p>I recently created my own cryptocurrency, UCaetanoCoin (UCC), with a supply of 100 trillion and one coins, all owned by me.<p>I sold one to a friend of mine for $0.01 yesterday, which made me not only the richest person in the world, but also the first trillionaire, as the coins I own are valued in $1T USD.<p>And my UCC has a total market cap of $1T USD (and one cent). Then I exchanged a single coin with myself for $0.01.<p>As my coin has zero transaction cost and instant transactions (it's a badass coin), I traded it back and forth with myself 100 quadrillion times.<p>This generated a total traded value UCC-USD of 1 Quadrillion Dollars yesterday, more than any other security was ever exchanged in a single day.<p>Anyone wants to invest on my UCC? Here's my white paper:<p><a href="https://cdn.shopify.com/s/files/1/0858/9696/products/122_1024x1024.jpg" rel="nofollow">https://cdn.shopify.com/s/files/1/0858/9696/products/122_102...</a>
I really want bitcoin to succeed because it really is a great way to take back the power from corporations and the plutocracy we find ourselves in today. The fixed pool of bitcoins is slightly problematic.. would it not be better if the pool increased at 1% a year or so..? Gold made sense as a reserve since it formed a quorum among the various economies. The dollar makes sense now but so does bitcoin. The only issue I can't resolve is the deflationary impact of hodling since there will only by 21 million coins.