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Full disclosure:
1) I am an idot; a full-fledged maroon
2) If you don't own any cyrpto currencies, this isn't really relevant to you, unless you geek-out on financial technology
3) I currently own no bitcoin or bitcoin positions; I also know nothing about Tether
4) I know only enough about BTC to be dangerous and must admit that many things about digital currencies confuse the hell out of me
5) I'm no fan of the debasement of fiat currencies, but I'm skeptical of the current forms of digital currencies including BTC as a mainstream substitute
6) This is not financial advice, rather food for discussion
That said, I got this article (below) from a friend that recently/coincidentally cashed out his BTC position. I've not fully vetted all the claims in the article, but if I did own BTC, I would want to investigate this immediately. It's an incredibly well-written and thought provoking article, and unusually for anything about crypto, it's actually relatively easy to understand (but I'm still not sure I follow everything).
In summary, the article asserts that the BTC markets (and prices) have been driven excessively up over the past year through the buying of Tether, a supposedly fixed-value coin that may be fraudulent and NOT backed by the dollar reserves the currency claims to have.
An unwind of a potentially fraudulent Tether coin would have multiple crypto market impacts including:
1) Tether coins (with supposed value in the billions of dollars) would likely become immediately worthless
2) The elimination of buying by Tether would reduce BTC trading liquidity by 70%, which would be assumed to have significant negative impact on BTC price, particularly whilst market participants were trying to establish the "real" price of BTC and/or impacts on trading exchanges
3) Investors that bought leveraged BTC positions backed by Tether would potentially be really screwed, though I'm not sure what the margin/collateral requirement for such are.
1) I am an idot; a full-fledged maroon
2) If you don't own any cyrpto currencies, this isn't really relevant to you, unless you geek-out on financial technology
3) I currently own no bitcoin or bitcoin positions; I also know nothing about Tether
4) I know only enough about BTC to be dangerous and must admit that many things about digital currencies confuse the hell out of me
5) I'm no fan of the debasement of fiat currencies, but I'm skeptical of the current forms of digital currencies including BTC as a mainstream substitute
6) This is not financial advice, rather food for discussion
That said, I got this article (below) from a friend that recently/coincidentally cashed out his BTC position. I've not fully vetted all the claims in the article, but if I did own BTC, I would want to investigate this immediately. It's an incredibly well-written and thought provoking article, and unusually for anything about crypto, it's actually relatively easy to understand (but I'm still not sure I follow everything).
In summary, the article asserts that the BTC markets (and prices) have been driven excessively up over the past year through the buying of Tether, a supposedly fixed-value coin that may be fraudulent and NOT backed by the dollar reserves the currency claims to have.
An unwind of a potentially fraudulent Tether coin would have multiple crypto market impacts including:
1) Tether coins (with supposed value in the billions of dollars) would likely become immediately worthless
2) The elimination of buying by Tether would reduce BTC trading liquidity by 70%, which would be assumed to have significant negative impact on BTC price, particularly whilst market participants were trying to establish the "real" price of BTC and/or impacts on trading exchanges
3) Investors that bought leveraged BTC positions backed by Tether would potentially be really screwed, though I'm not sure what the margin/collateral requirement for such are.
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