/biz/ - Business & Finance

Sorry, looked at the wrong column. I meant 644 million bitfinexbux

Jesus christ.

>>4433625
>meanwhile at bitfinex

explain to me how this tether works. how is newly created currency issued? why does the amount go up?

>>4433772
https://twitter.com/Bitfinexed

>>4433625
Not to worry they hold all the equivalent usd in a bank. Ignore the part where no banks will work with them

>>4433625
>yfw over 65% of crypto fags on twitter agreed that is was a fraud and the poll creator deleted the post.

>>4433835
>they have all the money
They can't prove it though, and when they've been called out they provided a half ass excuse for an email.

>>4433868
In addition the "audit" carried out had an addendum saying that it proves nothing, is not really an aduit and is only accurate as a snapshot....it is all going to fucking burn

My personal fear is that someone in the US treasury department is going to see bitfinex printing these dollars-but-not-dollars and move to ban crypto outright for inflating the money supply.

>from around the period where they lost their banking: "we do not expect the supply of tethers to increase substantially..."
>months pass
>over and over they do things like YESTERDAY WHEN THEY CREATED 60 MILLION NEW TETHERS

ready your anuses /biz/

>>4434017
They can't ban crypto. However they can ban tether and put bitfinex employees in jail for money laundering since tether is centralized.

Eventually bitfinex will print so many tethers that it will be greater than their marketcap supplies and at that point it'd be obvious to everyone that they can't be redeemed. And then BCH will devour BTC.

Or will bch inflate itself into being worthless first? The race is on.

From the Tether TOS:

"There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers."

>>4433625
Nah guys they get proffesionally audited there is a real note in a vault somewhere for every tether!

At least thats what they say....

Also lol they have a disclaimer for tethers saying that they are not at fault if you cannot redeem them for real dollars

HMMM RLY MAEKS U THINK

>>4433625
>when fiat gets fiated
>fractional reserve exchanges

>>4433625
What exactly is a tether and why is it bad?

>>4433788
i dont care about if its good or not as an investment. just tell me how it works at a basic level

>>4434120
It's a coin linked to USD. It's bad because some company keeps minting more and more and trading them for real crypto, eventually it's doing to drop to 0.

Tether TOS:

"There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers."

>>4434120
its just used to ride out volatility in the crypto market. supply keeps going up because of ((expansionary)) money policy in countries.

>>4434148
>>4434120
The problem is that its value can't be trusted. One day it's going to be worth $0. Make sure you're not holding it when that happens.

>>4434144
how is new tether issued? do they just print it and sell it directly?

>>4434166
The press a few buttons and create as much as they want. A single company has 100% control on mining new tether.

We know.

This and bitconnect will cause the next bear market whatever

>>4434166
>>4434161
yeah they prob do all sorts of bs. it's FED/CIA/IDF subversion for sure.

>>4434166
>>4434178
The best part is where they use the newly minted tether to wash trade on bitfinex and pump the values of the coins listed there. Every cryptocurrency that's listed on bitfinex is going to experience a major crash when this scheme collapses.

BTC, ETH, IOTA, OMG, NEO, all of them.

>>4434207
Why do you think it has anything to do with FED/CIA/IDF?

>>4434208
It's going to be the next gox

If tether pops quite a few exchanges will fold, big pressure will be put on thoes responsible (including anyone who has dealt in teathers) from government (just look at pirateat40 and that was fucking ages ago) and the whole crypto market will crash.

>>4434178
well right so then how is it issued? do you buy new tether from them or is it distributed to current holders?

>>4434208
ez cash grab. fucking genius

>>4434242
They issue the tether to themselves then use it to buy crypto on exchanges.

>>4434255
well i still dont get it then. how is buying tether an investment if the price doesnt go up, and you dont get any more

>>4434242
No one knows, and no one will know until after the eventual court case

>>4434250
It actually is an impressive crypto grab. They made a new crypto, convinced people it was worth $1usd per coin, and they're trading it as fast as they can. Since they can always mint more instantly they never run out, and people keep trading for it.

>>4434237
im speculating

1. crypto represents real danger to currencies (long run)
2. ez money (short run)

>>4434270
Bitfinex has lost all it's banking contracts and can't move usd around, so they magiced up teather as a substitute

>>4434166
>pump price of a coin with your fake dollars
>the coins you acquired with your fake dollars is now worth more
>issue more fake dollars because you have "the backing"
>repeat

>>4434276
It's definitely possible, totally the kinda they they would do. However I think it's just as plausible it's a company trying to get as much easy money as they can.

>>4434283
>>4434285
but people say you can "invest" in tether.
how is it an investment for me? the price does not go up. why would anyone buy tether?

>>4434197
bitconnect doesn't matter, it's just stupid normies. that coin isn't even tradeable

>>4434317
The idea is you trade between tether and a crypto, say btc, and use the fluctuating price to profit.

For example BTC recently corrected from $7900 to $5500. If you sold at $7900 and bought at $5500 you would have made a nice profit, and you could easily do that using tethers.

The risk is though tethers aren't backed by anything and they're centrally controlled/minted at will. At least most cryptos have a limited supply and a public blockchain.

>>4434308
yea if occams razor is applied then its prob just a couple of neets. fun to believe in conspiracy theories tho.

when i talk to normies, they're all scared of entering crypto. but crypto market keeps inflating. really activates those almonds.

tether is at over half a billion dollars. What impact will a crash have on BTC? I can't see it falling more than 50%...

>>4434350
oh okay. why do that over just fiat as an investor?

>>4434317
kek, no, tether is NOT an investment, it's literally a placeholder for real dollars, or at least, that's what they want you to think.

>>4434365
speed b/c real money is gained/lost in a matter of seconds

>>4434366
why is a placeholder for dollars better than just dollars as a quick way to exit a market before reentering?

>>4434385
taxes and legal regulations

>>4434384
oh, as in liquidity perhaps? i could see that. sorry, im not a trader, if its not obvious. im just long holding an investment. thanks for explaining thus far

>>4434393
alright cool. thanks.

>>4434393
If I go USDT to USD am I not taxed?

The longer this goes on the worse the crash is going to be.

Definitely the next Gox.

>>4434421
that's crypto to fiat so yes you're taxed everywhere.

usdt to btc and vice versa is not for non-burgers.

>>4434393
it is a meme that crypto-crypto trading saves you from any tax obligation. but if you enjoy being raped to death in prison by all means keep believing that