Tether FUD – Does it actually matter? Both sides discussed

US regulators sent subpoenas to Bitfinex and Tether, back on December 6th, and the news has shaken the crypto markets. Some people aren’t even slightly worried, while others are totally panicked. Let’s talk about Tether and the potential impact it might have on the markets. Because when it comes down to it, does Tether really matter at all? Let’s discuss.

Bloomberg article on Tether/Bitfinex Subpoena:

Nomics graphic from JP Morgan:

The difference between inflow and market cap and how it relates to Tethers.

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24 replies
  1. Landon Wilson
    Landon Wilson says:

    I am concerned about dollar price calculation for all coins being tied to satoshi value, and USDT riding on top of bitcoin. The exchange dollar values are actually USDT values. When you actually compare say ETH/USD to ETH/BTC, you see that ETH is actually gaining value, but the dollar calculations do not reflect this due to how that value is being determined. This issue could explain why the entire market goes down if BTC goes down. It can’t be from people selling Alts to buy BTC. That would immediately reverse BTC’s drop, but that doesn’t happen. These across the board drops in dollar value make no sense otherwise, and when people see these drops in dollar value, they dump. That ends up actually causing a drop in many alt coin actual valuations. We have a problem somewhere. It is unlikely that hundreds of billions of fiat are leaving and returning from week to week. And not just leaving BTC, but leaving Alts as well. Something is wrong here.

  2. Nader Amadeu
    Nader Amadeu says:

    what ist the f* business model of Tether?????? Tether's working principle can only make them losses! Why nobody asks this simple question? If traders sell their cryptos at the highs and by back at the lows agains Tether, than Tether is a black whole. The math does not close.

  3. Crypto FX Trading
    Crypto FX Trading says:

    The problem is not so much tether, the problem is that ppl are trying to create a new economy but still look at the news and actions formulated by the ''old economy whales'' and spread them like wildfire on youtube platforms because they need content and their watchers get scared. Then more ppl try to look in the news for something to ''explain'' what is going on and it piles up some more. Ask yourself, why would one of the top 10 richest people in the world feed you a story that dates back to december at this point in time, and what could be his motives? Really, what do you think motivates a multi-billionaire that controls information flow? Why would Zuckerberg say a few weeks ago that he is looking into crypto for his platform and now decides to ban everything that has to do with cryptos on said platform? You need more time brah? We'll stall the market for ya, take your time. Actually, let me lower the market a bit so that you have time to get in at a good price before we resume the party.

    I really wonder what stabilizing effect it would have if every major youtube channel (which is where most crypto enthousiasts get their ''financial advice'' even though its ''not financial advice, don't sue me'') talked about the actual technology and what is happening within the crypto sphere news rather than using blogs and sites that clearly demonstrated that they are filled with misinformation led to manipulate the masses into thinking or doing something that is not in their best interest. I really wonder.

  4. emmm70
    emmm70 says:

    I think that everyone should ask in what bank is the market cap of 200 billions of dollars of Bitcoin.
    I will tell them. IN NO BANK.
    The market cap in dollars of Bitcoin is only in the imagination of the people.
    So, if all the people wants to cash out their bitcoins there will be a HUGE market CRASH.

  5. larposan
    larposan says:

    I get how the fake money inflow would affect the market and pump the prices, but still don't understand how the elimination of the fake money would crash the market in the same way… To begin with, the tethers are on the sidelines, maybe waiting to be moved to somewhere to be exchanged into dollars, or just otherwise sitting there. Why would the disappearance of something that has been sitting on the sidelines affect price that much? Is it that if ppl panic sell, the otherwise "buy the dip money" stored in tethers won't kick in?

  6. Rudy
    Rudy says:

    Thank you! That's all I needed to hear. If we are now getting taxed for crypto to crypto exchanges/trades, why use USDT? Just use USD and you'll be fine and safe that way…..or just keep trading crypto to crypto…yeah you still will be taxed because of the new tax laws but why risk it with USDT? Until Tether is verified to be legit, I would stay away from it.

  7. Darcy W
    Darcy W says:

    Am I missing something… didn’t Bitfinex close their doors to US citizens last year? If so why do they have to answer to US regulators??

  8. Mike M
    Mike M says:

    I'm just basically looking at it from a neutral perspective one tells me if tether screwed up let's get him out now let's have the Bitcoin price drop and let's use that as a buying opportunity for a cheaper Bitcoin obviously it's going to affect the price of BTC if tether unravels and if Heather doesn't unravel BGC will probably increase because everybody will view it as being stronger so dollar cost average right now while we're rolling a 10 G's and let's see what happens maybe we'll have a good opportunity to buy some cheaper Bitcoin or maybe the Bitcoin that we have now will just get stronger either way it's going to be a win-win it's just going to be do we win now or do we win later

  9. Neal Jones
    Neal Jones says:

    The whole establishment system is a fraud, so its amazing to me that they have the nerve to go after crypto. The root problem is govt – get rid of it

  10. SJ
    SJ says:

    It shouldn't matter. Price is a measure of what people are willing to pay for the item. People use USDT just like they use USD. So the price of BTC shouldn't technically be affected by Tether being taken down – in this case, even if Tether is taken down, what will affect the price of BTC is fear. The only real problem, is if Tether the company has itself bought BTC, like a whale inflating price.

  11. Ezra
    Ezra says:

    I don't get why Tether is seen as a cause of capital inflow when the fiat-to-Tether gateways are so limited. When you realize that most people are "buying" Tether with crypto rather than converting fiat, you see a much simpler explanation why USDT has inflated prices: Bitcoin starting to dip? Dump your holdings into Tether. If your BTC gained X% in USD value, then you keep those gains and get to buy back in with X% more purchasing power — without putting more fiat into the exchange.


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