I don't know if I'm the only one who sees the scenario of tether going bust as a positive one. I think when that happens we will have a short-lived crash similar to the one from Bitconnect but overall this should bring more stability to the crypto market as more people stay in crypto rather than move in and out at various exchanges using tether. However, there is one scenario that I'm a little worried about.... the one where US government introduces heavy handed regulation using tether as an excuse.
RE: The MASSIVE Tether Ticking Time BOMB
You are viewing a single comment's thread from:
The MASSIVE Tether Ticking Time BOMB
This is a little more interconnected than Bitconnect was (ironically) for a number of reasons, so that's my major concern related to it. However, it would be a positive event overall as it would at least make the space healthier.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Actually, I take back what I said. I've started reading more on possible effects and the total amount of USDT transactions is 70% of USD transactions (roughly by taking a quick look at total BTC transactions). If we had a big sell off with 2 billion in BTC to USD transactions and DIDN'T have tether we would increase the USD transactions by 70% more. This would make the lows WAY LOWER. There is only so much cash money sitting on GDAX, Coinbase and gemini accounts. We can't wire money in on weekends. There are ACH limits each day. Where would the extra 1.4 billion come in to support the sell of? What happens to transaction times if all those tether transactions leave the exchanges and move to gemini coinbase etc...
A crash of tether would be detrimental downward spiral. Tether pumps the highs higher and dampens the lows lower.
Thoughts?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit