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/biz/ - Business & Finance

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49358885 No.49358885 [Reply] [Original]

What if everyone who holds cryptocurrency converts to tether at once and wants more tether than tether has in USD liquidity?

Why does this board have no stupid questions general? Is it because this board is to just shill shitcoins and not actually learn anything?

>> No.49358903
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49358903

>>49358885
Off by 3

>> No.49358986

>>49358885
Same applies to digital gold and silver bullian and physical redemptions, among other commodoties. But yeah. Its a risk.

>> No.49359004
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49359004

>>49358903
But now let's see Paul Allen's dubs

>> No.49359017

>>49359004
>from 3 to 4
time to untether my mortal coil

>> No.49359193

>>49358885
>What if everyone who holds cryptocurrency converts to tether at once and wants more tether than tether has in USD liquidity?

Every time someone sells crypto for tether, someone else on the other side is selling their tether for crypto.

If everyone wanted to tether up, momentarily tether could depeg upwards, with people selling it for >1$ on exchanges. But then someone like Alameda would come to arbitrage, sending billions to tether to mint new tether and sell them until the price of tether stabilizes again around 1$

>> No.49359271

>>49359193

Holy fuck biz is stupid if you have to explain this.
>WUT IF EVERYONE TETHERRD UP AT ONCE HUURRR

Then tether just mints more and dumps for the USD to back it. Is OP 3 years old, its not complicated to understand at all.