/biz/ - Business & Finance

>>4449189
That can't be good, right?

>>4449197
Nothing to worry about goy. Just keep trading so I can send my (((kids))) to Harvard.

I've heard people meming about "muh tether" whenever bitcoin moons. Can someone explain to me exactly what tether is and how that could theoretically boost BTC?

>>4449189
Mt. Gox imminent

>>4449197
If they actually have the USD to back it up, it's not an issue. If they don't have it, well this is a bubble waiting to pop and will have serious consequences for crypto. If someone can prove one way or another whether the USD to backup the tether actually exists, we can avoid this potential problem from becoming much larger.

>>4449236
Flavor of the month, fueled by some psychotic twitter user

>>4449189

>>4449246
>If they actually have the USD to back it up
>Bitfinex has no banking
>USD to back it up

>>4449246
If this entire bull run turns out to be Bitfinex pushing prices up from Tether just to stop themselves from Mt.Goxing crypto is fucked for the next year or three.

>>4449246
They do. I've found this on their website:

I for one pulled half of my crypto into tether just as it hit 8k again.
Because I think we're actually looking at a fall to 6k or 5k in the next 2~3 days.

>>4449342

>traditional currency

Worthless Taiwanese dollars

>>4449342
ahahahahahahhahahahahahahahahahahahhaahahhahahahahahhahahahaahhaahhahaahahah

>>4449189
wtf is up with this shit

>>4449264
lol, it even stands T for Tumor

>>4449189

I swear to fucking God, this Tether bullshit is going to bring us back to the dark ages of 2014.

>>4449342
BIG if tru

>>4449342
how do they make money?

>>4449189
Tether is fucking irrelevant though.
People pay more attention to BTC than to Tether.

>>4449474
fees

>>4449475
you guys are so fucking retarded lol.

They buying btc with fake, printed money and then selling pumped etc for eth/ltc/bch/etc...

>>4449474
Tether is owned by Bitfinex, which makes money on trading fees.

What exactly IS tether and why would it increase BTC's price? All I hear is "muh tether" but no explanations

>>4449529
Bitfinex "creates" their currency USDT and buys BTC with it. They apparently have every USDT backed by USD (probably gained with trading fees) and instead of keeping the gains from fees in USD, they simply buy BTC with it.

>>4449529
What's there not to understand...?
It's basically online-Dollar.

>>4449529
Learn to google things yourself you massive wanker

>>4449549
>Bitfinex "creates" their currency USDT and buys BTC with it.

Whats this have to do with that Tether line going up? What is tether, you didn't answer me.

>>4449557
man u stop trolling cunt

>>4449529
A token everyone agrees is worth a dollar

>>4449529
>What exactly IS tether and why would it increase BTC's price? All I hear is "muh tether" but no explanations
Tether is fake USD used to margin trading
When people try to short btc andnit stops going to new ath tether is used to buy all this shorts and trigger their stop losses making them buy btc back at higher prices

>>4449578
>>4449551
So it's just another word for the "online currency" used to buy BTC on Bitfinex? Then, the tether is being used to buy BTC. I don't see why this is an issue or would cause potential for it to flop. People use tether to buy BTC. Thus, as tether increases, BTC's price goes up because BTC is the #1 thing bought with tether.

What am I missing here?

>>4449596
> I don't see why this is an issue or would cause potential for it to flop.
>BTC is full of smart money
>No way we are past the early adopter stage
Kek

>>4449596
yea but they are printing it creating inflation, which someone will eventually have to pay.

>>4449609
When you buy BTC with tether, do you HAVE to sell it back into tether? Or can you sell it into your country's currency of choice? If anything, this sounds like something that would fuck up a country's dollar, not fuck up Bitcoin. But it wouldn't fuck up any country's dollar unless the amount of tether used to buy BTC was ridiculously high.

Is anything I'm saying wrong? "Muh tether" sounds like "its fucking nothing" just like I thought before I knew what it was. It's just some form of FUD.

>And the worst case scenario? Hundreds of millions of “1 USD” blockchain tokens floating around and continuing to trade, that in reality have no USD backing them at all.

Simple question

How does one get tether?

As in how do you get new tethers that have been created?

Can I just buy tether from somewhere without buying btc first?

>>4449596
I can't see it either. It's the same as writing the $ amount into a database. Are all the other exchanges backed up by fiat? Prove please. They too can sell your BTC and create a bubble. It's the same for every exchange except they prove the backup.

Also if an exchange doesn't offer usd/usdt it would be impossible to sit out crypto-market independently like it is the case with for example etherdelta. There you have to sit in one of the tokens all the time.

Btw. if apple goes bankruptcy your $100 itunes gift cards are worthless too.

>>4449780
New tethers are created when fiat is deposited to Tether of Bitfinex, so you transfer fiat there and get Tether in return. To buy existing Tethers you trade against Tether pairs on exchanges.

>>4449189
when tether crash - Bitcoin mooooooon!

>>4449517
They aren't pump and dumping if this conspiracy is true. They are running a ponzi scheme. They were hacked for 36% of their customer's accounts not too long ago. This is how most ponzi schemes start. Owner is behind on payments, lies and thinks he can cover it with profits from exchange. Loses his banking partners because they see from his audits there is potential evidence of fraud. Having no bank, the fraud is about to be exposed so he turns to e-money to save his ass. If the Tether conspiracy is true, it isn't a pump and dump. It's a last ditch effort to save Bitfinex from financial bankruptcy. That being said, if they do it right, they couold make the money back and no one would know. Its been quite some time since the hack.

>>4449902
lmao get a load of this fucking moron

>>4449921
even if this was true USDT is successful as it has a use case

therefore as long as it doesnt crash and burn theyre okay

>>4449921
They have banking in a bunch of countries, just not publicly available. The banking issues arose because many individuals were wiring money. Corporate partners never had problems depositing and withdrawing.

>>4449236
Tether are IOUs, basically a fractional reserve. They are borrowing from their own credit to fuel the bubble. $50-$100 million/month is printed out of thin air. Tether is basically the Cryptocurrency Federal Reserve

People sell Bitcoin for tether and want buy back it cheep
Who realy sell Bitcoin for something dont hold tether

>>4449189
faggot never heard of log scale

>>4450031
so you're implying tether supply increases exponentially? what kind of bullshit point or you even trying to make?

>>4449633
>>4449633
Tetherfags ITT please respond to my post.

I STILL DONT UNDERSTAND TETHER

SOMEONE PLEASE EXPLAIN IT TO ME

WHO SAYS ITS WORTH 1 USD PER 1TUSD? WHY DONT YOU JUST USE USD?

>>4450477
You must deposit one USD to get one USDT

>>4449342
anyone can claim this, it has zero substance

if the company fails there's no insurance for their business plans

>>4449451
I missed the boat and got in at $5800, I'd be fine with a Mt Gox 2.0 crash to buy cheap as dirt.

>>4450477
Because there are a lot of USDT pairs. More than USD.

>>4450477
How the fuck could one be so god damn retarded?

>>4449342
YUGE I F true

Why would using Tether instead of USD even be beneficial?

>>4451611
IOk, for those who don't get this. 1 Tether is 1 USD yes but that doesn't mean Bitfinex has to keep 1 Tether for every 1 USD. They can create as many tethers as they want . Their bet is not everyone will withdraw tether at the same time and BTC will go up enough with real fiat to cover the outstanding tether. It's not any different than what banks do. You don't really think a bank has billions just sitting around ready to pay everyone? The difference is banking laws don't allow banks to leverage too much. Bitfinex may have enough cover but you can't know.

>>4449342
easy they have the money in btc so it goes up when btc goes up

>>4451638
That's a very convoluted explanation of fractional reserve banking, and that's exactly what tethers and bitfinex are supposed not to be doing, because they would be acting like a bank and they have no right to do so.

>>4451638
Yeah I get how it's good for the issuer. But there is no difference for me the user if I use USD or Tether since they're supposed to be the same thing.

And they do claim that every tether is backed by USD but that's what people are having a hard time believing.

>>4451887
If it concerns you get your money out of bitfinex (see mt. gox) and prepare for a BTC crash. If you're not concerned then BTC will go to 10K EOY

I submitted a tip to the fbi ans irs about tether and bitfinex

Now we wait :^)

>>4452000
I'm on kraken (ayy lmao), and crypto money is money I'm ready to lose, so I'm all set for that 10k. I'll stay put about the tethers though and try to exit asap if it turns out to be fraudulent.

>>4452143
Given the fact that they effectively claim to have over 600 million USD in the bank backing their currency, there's a good chance that it's fraudulent.

The question you should be asking is when the run will occur. It may survive a while longer, since their pumping does generate some cash for them.

>>4449189
what effect does 600 million in (((tethers))) have on 124 billion market cap?

>>4449342
Quick, grant more tokens, we don’t have any money and need to inflate this fast

>>4452223
Not that much. The bigger concern is a whole exchange going offline because of this and the resultant bad publicity for crypto

>>4452223
There's some sort of multiplier based on people moving coins in and out of tether. Trust is probably the biggest issue, as well as the possibility that tethers were used to pump the market. Of course the market will recover, but people in it right now might lose something.

>>4450477
You goy, put in usd I give you bitcoin. You want sell bitcoin? Here you take tether not usd. Don’t worry, 1 tether is usd, we swear to god. Look how much tether you’ve earned, good job.

>tfw stuck with 350 usdt on bitfinex

I can (and will) obviously withdraw my coins pretty soon but I'm looking for a good entry with my USDT first. Greed will be the end of me.

>>4452495
>>4452368

normiebase doesnt seem to have this jewish conspiracy

I try never to hold tether I always hold actual crypto, using something stable like LTC as a medium

>>4449189
shut the fuck up already. There is no conspiracy.
whale wants to buy btc so he deposits usd with bitfinex and gets credited tether
now he can trade on bitfinex which is the best exchange. What is so hard to understand?

>>4449921
omfg I hope you’re wrong

>>4453021
>whale wants to buy btc so he deposits usd with bitfinex and gets credited tether
oh yeah
every time btc struggles to hit new ath a magic whale with $30mil comes to the rescue
how convenient

>>4452495
>buy eth
>send to coinbase
>sell for USD but dont withdraw
???
>buy ltc
>send to personal wallet until you are ready to invest
>transfer to exchange and buy
???

>>4449342
That sounds like bullshit. Like when someone who owes you money says "yeah i got the money" but you know they don't.

>>4452180

I'm not sure it's fraudulent but I'll keep an eye out for sure.

>>4452223
>>4452260
>>4452293
We will at least see a massive correction (30%+), because trust will have been breached (again elmao) by an exchange, and because volume and liquidity will be in the gutter for some time.

>>4453232
what reason would bitfinex even have to pump btc at this price point according to you?

>>4453275
What will save me the most in fees?

>>4452368
Hey soldier boy. You want bitcoin? Give dollar! You want sell bitcoin. I give you tether. Same as dollar. Soldier boy earn many dollars.

Too many goddamn Tether threads
>>4452856
>>4453050
>>4453185
>>4453239
>>4453329
>>4453347
>>4453433
>>4453742

>>4449342
Yup
They hodl more than marketcap of facebook
Legit

>>4453882
Almost like it's a coordinated FUD campaign...

>>4451005

Most think the same, i imagine. Making me wonder if a large Gox 2.0 dip would ever happen again. Is BTC too big to fail? The dream of high returns too tempting? Does it require complete network failures to happen?

Dips are getting smaller % wise and shorter in time frame.

>>4453897
>the largest BTC exchange is worth more than shit
>this is a surprise

>>4451638

If fractional reserve methods are being used they are still fucked. Maybe more so in a legal sense.

>>4449189

Goys it ok right now, let the next generation have to worry about it!
T. boomer

>>4450477
It's a financial instrument. It's designed to stay steady at $1.

You don't invest in it, you just use it as a parking place for money when you don't currently see any good trades.

>>4453897
FB has a 1000x larger market cap than tether. The levels of retardation on /biz/ these days really triggers me.

>>4454287
>$675M > $520M

kys

>>4449261
No my friend, a much deeper rooted problem

Exchanges are fractional reserving the fiat they owe people

Sure banks do this too but they had runs in 1909 and now FDIC, 100k USD per account of fiat is covered in case of a bank run or insolvency

But for crypto, there's no regulation

Imagine everyone at an exchange wanted their tether hanged to fiat at the same time.

Could the exchange handle it? No way, it would collapse

Ponzi 101

Tether is fractional reserve banking, if 0/1 is a fraction.

There is NO WAY to officially withdraw USD from Bitfinex. You CANNOT exchange Tethers for USD officially.
You also CAN'T deposit USD for tether.

And if this all goes tits up, your tethers will be worthless, and Bitfinex won't pay out the USD they owe. Not in a million years.

>>4454409
The fact that you could even believe for a second that Facebook's market cap is less than a billion tells me exactly how retarded you are. That you wouldn't check your facts with a 2 second search before embarrassing yourself just shows a lack of respect for yourself and everyone on this board.

You should actually kys.

>>4454498
So withdraw your BTC?

>>4454526
>Being a soyboy arguing facts on the internet

>>4453897
>>4454409
>facebook market cap is 520M
>the absolute state of /biz/

>>4454543
Bitfinex has such a high trade volume, I don't think any crypto is safe.
BTC will drop, but how much?

Also the page https://wallet.tether.to/transparency that lists stats for tether, total issuance, fiat reserves held, etc, has been down for ages.
<<<This is the archive.org archives for this page.
Red is a server error, see how the transparency page has been down for months?
It came back up on the 19th. But now it's down again "We're sorry, but something went wrong"

>>4449189
This chart suggests the opposite of the tether conspiracy theorists..

What is this post supposed to prove?

>>4454584

Kid you're on /biz/ and you thought the market cap of fb was less than 1bln. There's school tomorrow, don't miss it!

>>4454615
If you don't understand the tether conspiracy, why are you commenting on it?
Look at the market cap.

>>4454619
>what is fall break

>>4454086
Why cant you use usd to park ur money?

>>4454628
You're american, everything makes sense now.

>>4454624
I do. The claim is that the introduction of new tethers is propping up the price. But this chart is suggesting the exact opposite.

The "conspiracy" isn't that more tethers are being printed. This is a public fact that BFX acknowledges. Them printing more tethers isn't a problem in itself as long as they are holding enough USD reserves to back it up.

Literally none of us know if they are though, and that IS a cause for concern. I'm just saying that OPs pic is fucking stupid and shows nothing.

Also, there is supposed to be an audit of their BFX USD reserves that will be released by BFX. Depending on how thorough it is, and what it reveals, this could turn out to be a bunch of FUD or a serious issue.

>>4449921
Ya I feel like it started as a scam and likely is a scam but if they pulled it off they may be in the clear. They’ve pumped the bitcoin price high enough that if they held bitcoin off trading fees and paid off debts with tether deposits, now the only thing left to do is dump the bitcoin for cash without lowering the price of bitcoin.

>>4454666
>as long as they are holding enough USD reserves to back it up.
But this doesn't matter if they don't let you withdraw USD anyway?

Problem isn't guaranteeing that they have fiat to back it up, maybe they even do.
Problem is that if things go tits up, you won't see a cent of that fiat.

>>4454644
Americans can easily get millions and billions confused, yuroPOOR.

>>4454686
Of course it would. The whole system stinks of potential fraud. I don't trust USDT and would never trade with it. But the recent push on tether conspiracy is nothing but concern trolling after a failed BCH "coup" attempt.

This topic has been discussed ad nauseam for over a year now. Funny how right after BCH fails to gain traction and BTC continues it's bullrun this is the new FUD of the month bears have to use to shill around crypto media.

I'm not saying it's a non issue and something we should ignore, but it's worth considering where the narrative is coming from and why this is suddenly the doomsday scenario of the week.

>>4454762
I dunno, as much as it's been talked about for a while, it's starting to get louder.

People also complained before the housing crisis. Some people saw the picture on the wall, but it happens anyway.

>>4451889
well, they released an "audit" to show that all tether was backed up by USD but on the first page of the audit it said "this is not a legal audit"

>>4452495
sauce on this desu senpai

>>4454752
You're defending your fellow buddy, that's cute.

>>4452223
you only need a small portion of the market cap to affect the price. If you create $20,000,000 of tether out of thin air right as a sell-off happens, you can stop the sell-off and keep btc rising

>>4454787
One of the theories behind TA is that news, good or bad, doesn't matter until the market is looking for it to matter.

Meaning that, when the market is looking to enter a correction, it will look for the first sign of bad news to justify the correction. When the market is in an unstoppable rally, bad news is usually ignored.

BFX has lost a huge market share of the exchange market in the past 2 years, with USDT accounting for an increasingly smaller portion of the market. If/when USDT collapses, it may not have propped up the market as much as people are suspecting.

However, with the recent concern trolling on the topic, you can be sure it has been added to the list of potential correction causes.

>>4454815

We need a legit alternative to USDT. Legit audits, by a top4 firm. Hell, give me more fucking currencies while you are at it. Here's an idea for an ICO.

>>4454994
Dai should be pretty good stablecoin

>>4454994
Why not just use USD. The day a major currency like USD fails is when the world is fucked over, and you got bigger problems.

>>4455102
Because it's annoying to transfer, vs crypto.

>>4449342
Now this is what I call excellent bait.

>>4449596
found the redditor

party's over boys, pack it up - dumb money here

Um so tether has 600milion dollaars in reserve somwhere, like therex 600million dollars in a safe somewhere because tahts how it suppose to be for this 2 work, also what happens in a year, at this rate they will need 3 billion fukin dollars, thats 3.billion of american dollars in a reserve somewhere un wtf guys???? And how does the tether company profit??

>>4451611
You don't pay taxes as you didn't convert to fiat.

why use an exchange that doesn't let you withdraw your crypto as Fiat? are you guys fucking stupid?

>>4454994
nubitz