/biz/ - Business & Finance

>>6554454
Isn't this like the third time today they've done that?

Unbelievable, as soon as it's printed it pumps to 11k.

Someday, this Tether scam is gonna be exposed, and that may be the end of crypto.

lol, printing during a crash, sounds legit! because surely there's money just pouring into the market... somehow.

>>6554454
>Crypto is great because you cant print money like governments do around the world with their worthless fiat
>Tether proceeds to print a gazillion amount

>>6554454
It's amazing and hilarious at the same time.

no tether is causing the crash retard. When bitcoin goes up they need tether, when it goes down they need more.

>>6554554
Someday. But not today :^)

>>6554661
>worthless fiat

>people are buying the dip
HOLY SHIT IT'S A CONSPIRACY

>>6554454
Tether has saved us again

>>6554780
I don't agree with that statement, but it is always used by crypto enthusiasts.
>Muh capped number of coins
>Muh deflation

>>6554454
thank you based tether

Tether, the next scam after Bitconnect, I am calling it folks.

>>6554942
>fiat is fake moneys bcs the evil guverment illuminati make dem
>new paradigm coin is reals bcs it gib free monie everyone

>>6554454
>>6554554
Wait, how the fuck does this work, and why didnt they do it sooner?

these niglets need to print at least a bil

>>6554554
look the other way anon just look away.

>>6554454
It's almost like people are putting fiat into bitfinex to buy the dip, so they have to create tether. Crazy huh?

me brainlet
literally how is tether any different than USD wallet on GDAX?

>>6555138
Because they want you to panic so they can buy your coins cheap, you dumdum.

I wish these chinks would print more and more and more, and fuck up the kikes' short futures contract ending tomorrow

THE RAT VS THE DRAGON

About god damn time. What took so long?

>>6555379
yeah the real show starts tomorrow

>>6555338
Yeah, $100 mil worth, while the price is crashing. Amazing!

>>6555138
push buttin
mak money
by dip
is ez

http://www.usdebtclock.org/

far worse

>>6555138
Tether is a crypto created by Bitfinex, long story short supposedly they print out more tether to inflate the price of bitcoin so they don't go out of business. It's a pretty cool conspiracy that is probably true.

Can somebody explain what the mechanism is behind printing Tether meaning that money will head back into BTC and the market?

>>6555581
Yeah some chink whales are getting rich. In real money, I mean.

>>6555749

Economic crash?

>>6555800
they don't print money dumbass, people deposit money and they convert them to tokens

>>6555961
What happens when everyone cashes out at once?

>>6554454
Is it really though? If you have 100k new accounts a day on coinbase where everyone puts in 1000. Then this crash happens and everyone moves to tether, what's the issue? Shouldn't it mean there's 100MM new money in crypto?

How do I find link to image in oP?

>>6555961

I never said Bitfinex could print money, I said they print Tether, but why does doing that restore confidence in the value of BTC or cause BTC's price to rise, and "safe us from this crash"?

>>6556077
the system crashes. but that would happen to literally any exchange and bank if everyone tried to cash out the same time

>>6555228
They literally print free money, they operste on fractional reserve banking, it’s just a time till it blows up and people who hold tether eat shit.

>>6554454

Just wait until all those USDT holders try to cash out because they're too pussy to stay in the market. Oh man, the amount of red wojaks will block out the catalogue.

>>6556186
Can be a really long time until that happens though. Stock market should have crashed three years ago and its still kicking.

>>6556156
people convert to tether because they lost confidence in btc not the opposite

>>6556387

If they're printing hundreds of millions to buy and it isn't creating a reversal, that would be a bad sign that the real money just isn't coming. But who knows what is going to happen in the short-medium term, we've just been crashing for a day.

>>6556161
What is the guarenteed minimum?

Banks are typically ensured as well.

>>6556081
It should, but it doesn't, because USDT is unauditable and is backed by nothing. :)

>>6554669
I fucking love this timeline all is just so subreal, I don't even know what is going on anymore.

>>6554554

Or hopefully Jibrel and jCash can replace it.

>>6556531
when that happens to banks they usually shut down the bank to prevent everyone cashing out. If you are in EU anything under 100k is insured

>>6556186
If that's actually how it works then tether is backed with usd as it claims and there's no problem.

>>6555138

every tether was supposedly backed by one dollar but they gave up and now just print them. for some reason the market accepts this because they need a dollar token

>>6554454
Fuck me. So people believe that all this money that was pump into bitcoin last year was real money but in fact it's all fake. There is now real money behind this grow? It's all fairy dust?

>>6556487
>it isn't creating a reversal
It actually is, btc is around 11k. And that even though the new tethers have only only 2 out of 6 confirmations and can't be used yet.

>>6556186
>they operste on fractional reserve
why does everyone say this? is there any proof they print more than they hold USD?

>>6556161

Banks would just get bailed out, but I seriously can't imagine a "run on the banks" these days. Nobody transacts in cash, everyone just uses their cards/bank accounts. We experienced a kind of run on the banks during 2008 in the sense that there wasn't enough reserves in the banking system to cover their debts between each other, so in a way banks were "running" on each other's reserves when the entire reserve system was standing at a loss. Banks can also be out of money over day to day transactions from one customers account to the account of a different customer at a different bank, but they effectively just overdraft at the fed on their reserve requirements and the fed gives them the money at a penalty. So banks get "bailed out" as a regular part of their business.

>>6556672
but what is the dollar backed by?

>>6556672
No, they first create tether, go from that first.
>>6556387
I agree, it can take a long time especially if the market stays stable. Except if regulators actually start investigating this, then it will pop much earlier.

>>6557068
Nuclear Motherfucking Bombs

>>6554554
how is this different from shit the federal reserve pulls during crashes

>>6557168
rofl

>>6556924
There isnt proof that they are holding tho? Or is there? I’d gladly be proven wrong. it makes sense for them to do this because they will never cash out 100% shit they hold just like banks. And being unregulated why wouldn’t they use it? Tbh i havent researched this in the last two months, so i don’t know if an audit happened

>>6557181
Assuming they are legit, it's money that actual people put in their vault on their own.
Assuming they are legit, that is.

>>6554633
what about people switching to usdt to avoid the crash?

>>6555800
If people can't buy tether they will cash out of the market

>>6554554
>Someday
Exactly, someday... maybe next year, who knows

>>6556585
Well would it be silly to assume the 200MM that left in the last day, 100MM went to tether?

>>6557168
>>6557310
it's true though
I 100% guarantee you the us economy will -NEVER- suffer unrecoverable losses any time before the literal end of the world

Dude you know how fucking high demand is for tether
They gotta keep printing the shit so it stays pegged at $1
Plus everyone on bitfinex is closing their shorts and opening longs. They need usdt.

Try understand how this market works kthnx

>>6557382

Thanks, that wasn't so hard but apparently this mongoloid >>6555961 >>6556434 couldn't manage it in two attempts.

>>6557507
thiiis
you retards think tether can only come from fiat poured into the market

>>6555749
Looking at that makes me want to short america. Is it possible...?

>>6555138
>>6555363
>>6555777
>>6556716
Here's how it works. Tether is pinned to a dollar in value and allows traders to escape crypto into something "stable." Every time someone sells BTC/ETH/etc to Tether, one Tether is created. So if you sell $10k worth of BTC to Tether, $10k of Tether is created out of thin air to hold your position.

UNFORTUNATELY... whenever a trader sells their Tether to re-enter a crypto position, that Tether isn't burned. It just goes on existing like a zombie token of sorts.

So there's our Ponzi problem. Theoretically Bitfinex holds one dollar for every Tether issued. In reality, they only HELD a dollar per Tether issued until it got converted back to crypto. Yes, when an audit is finally ordered it will be the crash that brings this all down.

>>6557642

yes.. lol through options and ETFs... most of you coiners are completely clueless to the world of economics outside of your space.

>>6557547
except when everyone gets them

>>6555777
Digits confirm.

>>6557574

What do you mean? Genuinely asking, I don't know how tether works still.

First of all, as I understand it, when bitfinex prints a bunch of new tether wouldn't it always have to go to people transferring fiat directly to tether unless we are basically admitting that their tether > bitcoin > fiat business model is correct? As in, if you go fiat > bitcoin > tether then you're going to be buying tether from another person in the market that got their tether from selling crypto and on and on backwards. At some point, someone entered that market by exchanging fiat with tether to begin this cycle. So you're always dealing with a fixed amount of tether that is going back to an original entry into the market with fiat. If it is the case that bitfinex themselves are creating tether because there is demand for it, and they are on the market buying bitcoin from somebody for tether, then that tether isn't backed by anything on bitfinex's books except the acquisition of some bitcoin. If they actually want to keep parity, then they have to go flip that bitcoin for USD quickly on some other market. If they do it out of the cash people have already deposited with them, then they're going to be at a deficit in their reserves in the case that everybody calls on them for their money.

>>6555961
Keep telling this to yourself.

>>6558189
They just issue tether from nothing. It is the quantitative easing of crypto

>>6557695
Lmao this market is so fucked

>>6557695
Thats exactly what fractional reserve banking is though principally.

For a bank to lend money it just prints it, or creates a string of 1s and 0s, thus increasing the overall supply of currency and leading to inflation and devaluing the previously existing currency(think all coins other than Tether).

We should start a petition to get this shit removed to prevent another future crash...

Tether printing is in response to demand for people buying tether, so it is a result of demand for crypto, not the cause.

Tether is just their way of implementing a similar type of fractional reserve banking system that is applied to fiat.

>>6558340
the difference is that government forces us to use their made up money at gunpoint

bitfinex cannot do this, so as soon as faith in the system is gone, the value goes down to zero

>>6558441
Isn't that bullshit

>>6558340
Yeah, but it's only cool when banks do it. According to the government, they don't like anyone else playing (((bankster))).

>>6558539
This we all fucked for real. At some point it will all be unravel and it will be the end.

>>6558441
Yeah but it devalues the market and makes the other coins appear to be worth more than they really are, which is what leads to bubbles like this...

>>6558539
but if/when tether goes down it will hurt blockchains public image and make crytpo take longer for mainstream adoption, plus itll cause another crash like this that well have to endure which could be even worse...

>>6554454
Tether is digital money. Its always worth 1=1 a share.

>>6558618
Do you think any crypto will last after shit hit the fans?

>>6558660
read this
>>6557695

>>6558340

It's not that simply though, tether could actually be a problem because it is supposed to be backed by something. That means Tether doesn't have enough dollars in its reserves to meet liquidity requirements, it is bankrupt and people have lost money. The dollar isn't backed by anything, which gives it more flexibility. The government's ability to bring forth more dollars is never in anymore question than Tether's ability to make up tethers, or Bank of America's ability to create new bank accounts.

Banks can fuck up the economy if they are making a bunch of bunk loans, but as long as their loans are backed by real demand and real supply of goods, real GROWTH that is, then they can increase the money supply without creating a runaway inflation problem.

>>6558340
>Thats exactly what fractional reserve banking is though principally.
No it isnt. The purpose of fractional reserve banking is to lend money to generate more services, resources, and overall labor, which leads to a stronger economy and more money. So long as half the population doesnt try to withdraw at the same time, its a good system that allows for growth. If your currency cant inflate, you can't possibly lend, and if you cant lend, you dont get new businesses, homes, etc.

>>6554454

>Quantative easing is the solution to the crypto-crash

This just gets better and better. Pink wojacks at the ready, goyim.

>>6557695
>>6558748
I dont see a problem. Tether is better than Ripple or Stellar because the money you put in always remains stable.

>>6554454
Thanks Spoofy, hallowed be they name...if it wasnt for spoofy, wallstreet would of shat us all out!

>>6558609
Doubt it. If tether crashes people will jump back tot using BTC as a reserve currency. Which is prob so many people are spreading FUD about tether since they want people to start using BTC again as reserve currency instead of Tether. This shit is what cause the BTC goes up => alts bleed effect. It was actually reversed. Alts bleed => BTC goes up.

>>6558997
until it doesn't

>>6558340
Yes, but fractional reserve banking sucks without stable asset values and deposit insurance. 1930s had a series of bank runs due to a lack of confidence in the banking system, and I think I trust tether a lot less than I would my local bank, especially if the underlying assets(crypto) collapsed under it.

>>6557695

>UNFORTUNATELY... whenever a trader sells their Tether to re-enter a crypto position, that Tether isn't burned. It just goes on existing like a zombie token of sorts.

That actually wouldn't seem to be the problem, as long as the tether was originally bought by cash. If Tether still has the cash for that tether on their books, then the Tether is still backed by a dollar somewhere. The problem is only if they are either dipping into their reserves to profit, which I don't think is the thing people are concerned about, or if they are making tether without any dollars flowing into their reserves, which I think is the thing people are worried about.

>>6558797
The constitution states we should have just weights and measures, which means that paper money should be backed by silver and gold PERIOD. ie a limited supply of currency, just like all the other coins, except tether.

>>6556272
I think they won’t. At least not en masse.

>>6559167
That's dumb. Again, inflation is good. Its how you grow.

>>6559185
It's the only chance this tether system will survive. Make sure that those fuckers don't cash out.

help

I have no idea what the fuck is being said in this thread.
How is it possible to create a system that is more convoluted and counterintuitive than modern fiat currency?

>>6558815
Crypto was never about digital money transfer. It was an investment in future decentralized application. Sure bitcoin can be used to buy a house but its not useful for everyday transactions. These coins like Tether,Ripple, Stellar are just online banks so people where using them to convert their shitcoins into gains before putting them into bitcoin right?

>>6559142
>if they are either dipping into their reserves to profit
let's be real why wouldn't they when they are supposedly sitting on 1.6 billion rotting away? how is that a good move? unless their whole plan is to pump up all crypto indefinitely
wtf is their endgame even?

>>6554454

>>6559317
As long as people stay calm and don't cash out there is nothing to worry about. But if they do, then because of tether the crash will be ten times as strong.

>>6558997
Tether is more a placeholder than a currency though. Say you run a restaurant and have a table all set for dinner guests. They sit, eat dinner, pay, then leave. After theyre gone, some more guests come to eat. Instead of clearing the original table and setting it up for the new guests, you create a new table and set it up for them. Now you've got a restaurant full of dirty used tables but the guests keep coming, and instead of utilizing the dirty tables you decide to keep creating and setting new tables. Does that sound sustainable?

Tether bought btc reserve on the dip. What is the mystery

>>6558340
That's not how it works, the lended money comes from money that has already being deposited into the bank i. e. existing reserves. The additional liquidity comes form the fact that your money currently credited to you on your savings account has been given to another person as a loan. Even fractional reserve banking doesn't literally print money.

>>6559496
That keeps inflation down. The same inflation which caused people to lose money when mass amounts of stellar or ripple is sold.

Tether is the real digital fiat ;P

>>6559496
Its more like a restaurant setting a number of tables that get used constantly and adding new tables because more people keep coming and the original number of tables is not enough. Also
>food analogy

>>6559142
Originally each Tether was bought by cash. But imagine this... I give you $1 and you generate an IOU. You tell your friends that i gave you a dollar... you even show them the dollar. Then I come collect that dollar. Would you still have the $1? No. So why would you continue telling your friends about the dollar I gave you, and why are you still holding onto the IOU?

all praise tether

>>6559863

Sorry, I don't get how that relates to tether though unless bitfinex are in the market themselves buying and selling in tether that they are printing. If I buy a tether from bitfinex and then go onto the market and exchange the tether for a bitcoin, somebody else now has the IOU(tether). Bitfinex still has the associated dollar. The tether could change hands a million times for different cryptos, but as long as Bitfinex holds a dollar for that tether, then it's still backed 1:1.

But the way I understood it, people are afraid that Bitfinex is printing tether for themselves to buy crypto with from others, which presumably they then try to sell to back the tether they just created and make a small profit.

>>6560225
>but as long as Bitfinex holds a dollar for that tether

boy, do I have a bridge you could buy today

People just don't understand tether.
They are rich and smart people, they wouldn't risk jail time to bump BTC prices lol. They have enough.
Tether does have all the money escrowed in bank accounts. The problem is that the said banks make it hard for them to wire said money, but the deposits are there. People listen to that bitfinex'd retard when the problem is the banks, again.

>>6554454
Tether mostly creates in sell offs, so no, this is no signal that it's over

>>6560346

lol I don't believe that, I'm just responding to that guy that the problem doesn't seem to be that tether is moving around a lot. It's that bitfinex could be printing tether and nobody has any way of knowing.

>>6560387
Sure. Because rich and smart people would never fucked you over.

>>6557379
those people aren't depositing USD to back up the coins, though. and ask yourself why anyone else would deposit to back someone elses money?

>>6559248
>You money gets less valuable over time. And that's a good thing.

Is this the Huffington post?

>>6558618
>make crytpo take longer for mainstream adoption
That will be the time when the big businesses come and swoop in to take the space. Then the innovators in the little space come from the ashes and show those vultures what the true form of the market is under cryptocurrency. Which then get bought out by the big wigs again.

Fuck this life. It's just one big, unstable pyramid scheme made by an unstable organism.

>>6559060
I'd anything, BTC is a worse store of value than tether And I have good reason to believe that the value of BTC is being artificially propped up by usdt purchases. That's why the tether printing matches the end of the dip so beautifully.

>>6556272
Why would you cash out USDT when you could move it to Binance, buy Bitcoin for lower than on GDAX, and then sell the Bitcoin on GDAX for USD?

>>6555800

It means that bitfinex cant print fake dollar bills basically and use them to trade on bitfinex.

>>6556161

Tether was supposed to be 100% backed by real dollars which means they could withstand any run if that werent bullshit.

>>6557068

what is gold backed by?

>>6563546
It's turtles all the way down.

>>6557695

>Every time someone sells BTC/ETH/etc to Tether, one Tether is created

Wrong. Everytime someone sells a US dollar to the tether foundation a USDT is created. The USDT then functions just as any other shitcoin except it is stabilized at a dollar.

The problem is no one knows if they are actually taking in dollars every time a USDT is issued. They are supposed to be audited but the "foundation" stopped the audits conveniently when the amount of USDT and the value of bitcoin exploded.

So who's buying all these worthless tethers during good healthy market times
When the marktet recovers and people want a piece of action again they want to convert back
What happens?

>>6563546
who else

>>6563632
kek

>>6563786
Well they'd hold a dollar worth of BTC/ETH/etc for each Tether. For every seller there's a buyer... So you'd be trading some BTC for Tether. Unless Tether themselves turn the BTC into dollars (unlikely), it'd be held as BTC until you want to sell your Tether.

It explains why when BTC crashes we see a ton more USDT created... their "$1 worth" BTC holdings would be worth less in a crash

>>6563546
>implying it's not elephants

>>6564667
Are they also burned when we all collectively move back into whatever coin it is we were holding?
This seems like a logical solution
Either that or the whole 1:1 is a lie

the fucking state of this cartoon world

>>6554454
>$300M Tether printed today
>$200B Market Cap loss
It's going to be alright guyz

>>6565476
Market cap != dollars. Not even close.

>>6554454
why would anyone buy tether instead of just selling for usd on gdax?

>>6565543
Capital controls. Not everyone is an Ameriburger.

>>6564882
That was my initial point in >>6557695

They aren't burned

>>6556596

tether is literally going to end the market someday.
this shit can't go on forever
we're flying closer and closer to the sun every day lads.