Tin foil hat moment - a crypto prophecy
I was thinking about a crazy little possibility this morning after looking at some charts and what's been happening with USDT (Tether).
By all means, this is not financial advice, I'm just documenting my journey and blogging/vlogging my observations. So that being said, there is a very good chance I'm wrong, because most predictions are wrong.
I guess in a few months I will look back at this video and either pat myself on the back or laugh.
Thanks for watching my friends
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Bitfinex FUD
- An interesting article I found on Bitfinex -https://coingape.com/bitfinex-hits-back-called-exchange-insolvent/
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The entire market cap for USDT is only half of the trade volume for BTC in one day. Even if a large volume of USDT was converted to BTC it wouldn't have a big long term effect on the BTC price.
It would be an exciting day or two, but it probably won't trigger a huge pump. In fact, I would take the opposite side of that bet. If USDT collapses, I would expect it to have a negative effect on BTC and other cryptos.
My take:
Hope your prophecy will fulfill with the bull run. I am really thirsty for it :)
Yeah, but it does average the USDT, I checked! - that being said, I agree with the rest you said...
the fake binance letter was hilarious.
If coinmarketcap averages prices with USDT then you can't trust anyone anymore. I haven't checked and I just believed that the USD option you have on their website is for USD only.
That's an interesting assessment. I don't think I know enough about this stuff to know one way or another.
Every time I hear about USDT, I sigh. It annoys me... I don't understand it... and I don't trust it's history. Is it just me?
I'm starting to think that there is no way to really have a pegged asset... that the closest thing we could ever get to it, is something along the lines of SBD. A token that acts as debt against another to set a floor...
So Tether is just a unicorn that might end up dying soon enough.
Good hair hehe ;)
There are other alternatives to usdt now. We can see a big btc sell now. And if the news is that usdt is still safe and good.. then market will return to previous level and then it could gain momentum down if people freak out seeing the false move. Not advice hehe just pro info for free for you ;)
anything is possible really... that could happen, why not?
I was reading an article today about the difficulty of having a pegged asset. If you are pegged to fiat, then you need to have a bank (or a huge mattress) with liquid reserves to cover you. As a pegged crypto, you need to be pretty liquid, so that means that you are of very little use (big liability) for the bank because they can't lend the money that you park with them.
Add to this, the problem that only small banks are involved in being crypto until it is better regulated... And small banks are unstable even in the first world.
However, from what I understand Mkr is trying something different in the stable coin space!
Pegging to fiat may be unimportant. Perhaps we should peg to gasoline, food, or shelter. Things that have more real use... Who knows? :)
Possibly, but for the majority of the population, we refer back to a fiat value in terms of value! There may be a handful that now refer back to a btc value but in general that isn't the case.
Even if you peg to a material thing, then you need to be able to provide that thing on demand....
hrmmm need to read up on it... interesting.
Querido amigo @meno, sería genial que eventualmente nos hablaras un poco mas seguido a los hispanos... sería muy bueno tener tus crypto ocurrencias tambien en spanish... Oye, serías mas famoso hombre jajaja. Gracias por tus recoendaciones y tomarte el tiempo para hacerlas.