Bitcoin FINALLY hit $30k
- Thread starter Naughtyfatkid
- Start date
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Deleted member 1333509
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Well I mean you can choose to not feel safe if that's what suits the narrative best. Even better, just use DAI or USDC if you're suspicious of Tether/Bitfinex.
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Deleted member 1172552
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its to risky
- Oct 24, 2011
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This is kinda the point, that "Tether's reserves" were not really reserves at all. Backed by nothing. Free money from thin air. That's why it's already made Bitcoin crumble, and it can happen again. It's likely that it will happen again, and with the way things are playing out, it can happen DURING the natural Bitcoin retracement, which combined, would make the retracement appear to be an absolute crash.
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Deleted member 1333509
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You know that USDT is ERC-20 right?
Fragmaster
Senior Member
- Apr 3, 2016
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And I do, thanks for asking
PBNSurprise
Elite Member
- Jul 22, 2015
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At this point you’d have to buy in a lot if Bitcoin ever dips hard. And you’d have to hold for like 2 years before it’s grown to be worth anything reasonable
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Deleted member 1333509
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Sorry I'm not following you. You saw that link I posted? This one ->>>>> https://wallet.tether.to/transparency
It's not free money from thin air if it's fully collateralized.
Fragmaster
Senior Member
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Dude, you should stop acting as if u know more about crypto than I do. First of all, CEX can have backdoor to order books, and have account state USDT, they dont need blockchain USDT all the time.
As long as they add and remove atomically, they don't need collateral for the difference.
- Oct 24, 2011
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I was referring to the text on the picture with the green, "you can trust us" shield.
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Deleted member 1333509
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Just because you can do OTC trading of USDT without needing to use a blockchain doesn't mean you can mint it without everyone in the world knowing about it because it has to be minted from the blockchain.. obviously.
That's my only point - you said "mint USDT, buy BTC...." but how can they do that without the whole world knowing (hint: they can't - because of it being an ERC-20 token, as I said).
OTC trading has literally zero to do with minting.
Fragmaster
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You can't do it on bitfinex, but bitfinex can do it on bitfinex. It is only your assumption they dont tamper with it.
When you deposit 1000 USDT from ERC-20 , there is a trace. Bitfinex will credit your account.
But implication doesn't work the other way around. Bitfinex can credit account without having linked blockchain transaction, as long as they remove it. After trading with it.
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Deleted member 1333509
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If you understand what minting is then you'd know why what you've just said has nothing to do with it.
They can't create new USDT that will operate on the Ethereum blockchain without everyone in the world knowing about it easily. It's not possible, and it's not anything to do with Bitfinex, Cex's or OTC trading.
Just don't worry about it buddy, like you said, you're using USDC or DAI anyway so just read up on minting at some point so you'll get what I'm talking about.
- Oct 24, 2011
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Guys, let's make our own blockchain and cryptocurrency. We're a forum full of marketers. We should be able to get the word out.
Because it's not. It never has been PROVEN to be the case. Random text on a page named "transparency", tells me nothing. As a marketer, you should know this.
Fragmaster
Senior Member
- Apr 3, 2016
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CEX database USDT never needs to operate on eth or omni, because it isn't crypto
It is you who is misguided, believing that USDT can't exist purely on CEX.
Also if you think everything they have is collateralized all the time, you're wrong.
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Deleted member 1333509
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Everything is certainly not collateralized all the time, and for a long time Tether wasn't - other stablecoins have problems with that as well. I think now the main reason that USDT is only results from the pressure and scrutiny they've had on them - if it wasn't for that USDT would still be under-collateralized, and Tether has been used extensively to manipulate the market as well so I get where you're coming from with regards to that.
My only point was that USDT is not being minted if there is a virtual non-collateralized representation that is added to accounts on Bitfinex and traded with. In that case USDT isn't being minted at all.
I get your point that "fake" USDT could be used to pump the price, but the cost of doing so would require the BTC sellers on the way up to be covered. Even selling BTC at the top of that fake pump would still leave a huge amount of USDT that would need to be accounted for for the sellers during the pump and that likely wouldn't be able to be covered just buy the BTC sold at the top. But sure, it's possible for them to manipulate the price of BTC on Bitfinex by creating fake USDT.