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>Premise of currency is 1:1 peg to dollar>If redeem tether you get equal in dollar>Bitcoin $34000>Print $34000 tether>Buy 1 bitcoin immediately>Have 1 bitcoin in reserve>Price fluctuates>Goes down>Rush to liquidate BTC for USDT to cash out>Sell BTC to Tether for Tethers>Tether sells ITS BTC assets for Tethers>Takes clients BTC and gives Tethers>Customer cashes outSo far so goodReserves aren't USD they are BTC>Price goes up>Third party holders cash out>Kickback>Profit>Print tethers>Buy BTC>Price goes up>Third party hodlers cash out>Kickback>Print tethers>Buy BTC>Keep all this BTC in reserve>Third party hodlers cash out>KickbackBiggest third party partner? BitfinexDoing it too much of course uncovers the scamIt has to be done in a systemic and legitimate way and the party can literally go on forever>Pressure to audit>Partner-bank does faux audit>Green light all clearThis is why it works and why they can do it foreverThink of it like the central bank printing money except instead of creating inflation they immediately use the money to buy assets pumping the asset prices higher and higherThird parties cash out and give them their kickbackInstead of the money that were used to buy the assets enter the real economy and cause inflation they are stuck in a speculative space and since Bitcoin can't be used in the real economy (and is increasingly made to not be able to be used in the real economy) it is stuck in this loop and it can't escape the crypto-space...
If ALL BTC-holders rushed to cash out at the same time it wouldn't bankrupt Tether as they've got all the BTC needed in reserveThey'll just convert those BTC's to USDT and this will further push BTC's price down resulting in them having to return fewer and fewer dollarsIf 10.000 Bitcoins get cashed out they would have to sell 10.000 of their BTC-reserve, which would plunge the price further and the amount they'd have to pay becomes far far lessCompared to holding USD in reserves (which aren't tied to Bitcoin's price) they use BTCSo tl;dr>Be "centralbank" in isolated environment>Print money>Buy monopoly money with money printed>Keep in reserve>Third parties sell monopoly money for real money>Get kickback>Rush to liquidate monopoly money for USDT happens>Have monopoly money in reserve>Liquidate your own monopoly money to pay back>Price goes down>Keep liquidating and pay back>BTC price is $1000>Customer wants $1000 tether for his 1 BTC>Tether sells 1 BTC for $1000>Takes 10 minutes to finalize deal>Deal done>Tether gives $1000 for customer's 1 BTC>Price drops>Next customer wants $990 for his 1 BTC>Tether sells 1 BTC>Takes 10 minutes>Price changes during this>Drops because of increase sales>Deal done>Gives whatever market-price is for 1 BTCHow can they get caught?Actual investigationWhy are they confident they won't be?Compromises all of crypto as a wholeEspecially Bitcoin
>>25900966>>25901035Might just get hit with the RICO
Fuck this shit I'm going all in on link with the rest of my btc. At least it has a fucking working product and can maybe stand on it's own alongside eth if btc goes under cause of this. Fuck
>>25900966I have suggested a much shorter greentext of literally this. It is 100% a scam, but its a scam that funds itself. Tether might not be 1:1 dollars, but if those scammer s are disciplined there is way more backing it than all the fud here suggests.
>>25901837Anon go into stablecoin, wait for the crash then go into link. If btc goes down every alt is going down even more