As of today, in theory, they should have $818 million dollars in cash reserve. If not the bitcoin collapse is going to be spectacular! Edit: article with context: https://www.bloomberg.com/news/articles/2017-12-05/mystery-shrouds-tether-and-its-links-to-biggest-bitcoin-exchange
Spectacular? Can you do math? 818 mil... bitcoin market cap is over 235 BILLION...
Yes I can haz math. When traders call for their 800 million and cannot get it they will go to the exchanges and try to recover what they can. Assuming the leverage is even only 30x you are talking 24 billion. The btc price is being dictated by only ~1m coins once you remove the lost coins and top 10 holders which is only worth around 14b. So yes a "margin call" if you will could absolutely tank btc. Totally open to other opinions though! You think there is zero leverage and 800 million sold against 14b will not be more than a dip?
Most of the buying is actually from Korea and not through tether. Nice try though
This is from an article : https://www.bloomberg.com/news/articles/2017-12-05/mystery-shrouds-tether-and-its-links-to-biggest-bitcoin-exchange. Give credit where its due
Haha omg it's worse than I thought! Thanks added to the post.
Source: coincap.com
Can someone explain this in easier terms? This makes no sense to me. If tether is fixed to $1, wouldn’t it still fluctuate equivalently against BTC?
No need to understand fudster likes to fud
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Kinda a biased vote don’t you think lol
Fair. Do you think they actually have the cash reserves? Even a "real" bank wouldnt hold more than 10 to 20%.
I am just saying the poll choices isn’t unbiased. I have no opinions of if it’s real or not.