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January 30, 2018, 10:52:30 PM
Last edit: January 30, 2018, 11:20:40 PM by STT

Tether is not intended to be speculative. There's supposed to be $2.3B actual fiat backing it.

vs crypto "market cap", which is hugely speculative. It's not an actual valuation, it's simply supply x price.

So yes, the collapse of Tether could have a hugely disproportionate effect on the whole crypto market if it's backed by little to nothing.



Do you think theres enough fiat on the exchanges to cover 500 billion?

Do you think theres enough fiat in the entire world to cover the 1.2 quadrillion derivatives markets?


The point missed with derivatives is that not all of them will simultaneously payout.   Its more like insurance policies where there is a risk of many requiring cash payout but usually these derivatives expire worthless.

I dont know the deal with tether but it sounds like FIAT or even Mt.gox where price became centered to 1 exchange; inflated by fractional reserve which is not how Bitcoin pricing should be determined