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Mad Dragon
Feb 29, 2004



punishedkissinger posted:

What does tether do exactly? People use it to buy bitcoin?
That's the beauty of it, man. It doesn't do anything.

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happyhippy
Feb 21, 2005

Playing games, watching movies, owning goons. 'sup


Pillbug

strange feelings re Daisy posted:

https://twitter.com/elonmusk/status/1392947696470659072?s=20
Bitcoiners are losing their minds with rage over this and I love it.

https://twitter.com/CryptoWhale/status/1392949658281037829

Diva Cupcake
Aug 15, 2005



I mean he’s just blatantly pump and dumping at this point.

https://twitter.com/IOHK_Charles/status/1392975995356000256

Honky Dong Country
Feb 11, 2015



buttcoin

Zamujasa
Oct 27, 2010





Bread Liar


Shumagorath
Jun 5, 2001


crypto can't die until elon tweets this

Rectal Death Adept
Jun 20, 2018


punishedkissinger posted:

What does tether do exactly? People use it to buy bitcoin?

an exchange created their own money they claimed were basically dollars.

they then bought billions of dollars of bitcoin from themselves with their own money since it's basically dollars. this caused the 2017 prices.

Courts are finally proving all of the critics right and that it was complete bullshit.

As for what it actually is supposed to do? True believers use it as a "Stablecoin" that never changes in value because the gimmick is that 1 USDT = 1 USD always, and since it's a cryptocurrency it's used at most exchanges. In the shiftier/smaller exchanges where you can buy the sketchier coins and daytrade on huge leverages they have USDT trading pairs for everything but not necessarily USD due to banking regulations. So you put your bots or your sell orders or whatever as (Shitcon)>USDT>(Shitcoin) since it was the "Safe" cryptocurrency attached to everything that never changed value.

Using an intermediate cryptocurrency to daytrade is risky since the entire market tends to move mostly as one, up or down. So jumping out of ButtholeGold into ButtholeSilver just exposes you to ButtholeSilver's crash. Going to BTC? ETH? same thing. USDT never changes value though because there is one dollar for every tether. It will forever remain $1. So instantly sell your 500 buttholegold for $5000 in USDT. Then when buttholegold follows the entire market down you buy 1000 buttholegold for $5000 USDT and double your initial position for any new swings.

How all of that works now that it's being revealed that there is no actual money backing them is a mystery. Maybe cryptocurrency itself became worth so much money that it no longer matters if tethers have any connection to reality. I mean Bitcoin is worth billions now partially because of the background market manipulation that went on because of tether but there are a bunch of "Stablecoins" now. Tether going down might wipe out the Bitfinex exchange and anyone with assets on it but that would be a minor speed bump at this point.

priznat
Jul 7, 2009

Let's get drunk and kiss each other all night.

Did grimes nft sales not go well or something

spunkshui
Oct 5, 2011





Rectal Death Adept posted:

an exchange created their own money they claimed were basically dollars.

they then bought billions of dollars of bitcoin from themselves with their own money since it's basically dollars. this caused the 2017 prices.

Courts are finally proving all of the critics right and that it was complete bullshit.

As for what it actually is supposed to do? True believers use it as a "Stablecoin" that never changes in value because the gimmick is that 1 USDT = 1 USD always, and since it's a cryptocurrency it's used at most exchanges. In the shiftier/smaller exchanges where you can buy the sketchier coins and daytrade on huge leverages they have USDT trading pairs for everything but not necessarily USD due to banking regulations. So you put your bots or your sell orders or whatever as (Shitcon)>USDT>(Shitcoin) since it was the "Safe" cryptocurrency attached to everything that never changed value.

Using an intermediate cryptocurrency to daytrade is risky since the entire market tends to move mostly as one, up or down. So jumping out of ButtholeGold into ButtholeSilver just exposes you to ButtholeSilver's crash. Going to BTC? ETH? same thing. USDT never changes value though because there is one dollar for every tether. It will forever remain $1. So instantly sell your 500 buttholegold for $5000 in USDT. Then when buttholegold follows the entire market down you buy 1000 buttholegold for $5000 USDT and double your initial position for any new swings.

How all of that works now that it's being revealed that there is no actual money backing them is a mystery. Maybe cryptocurrency itself became worth so much money that it no longer matters if tethers have any connection to reality. I mean Bitcoin is worth billions now partially because of the background market manipulation that went on because of tether but there are a bunch of "Stablecoins" now. Tether going down might wipe out the Bitfinex exchange and anyone with assets on it but that would be a minor speed bump at this point.

It works by being a ponzi scheme with extra steps.

Too many people come asking that exchange for American currency and they run out.

Then they get “hacked.”

punishedkissinger
Sep 20, 2017



if tether is equivalent to USD why not just actually use USD?

Shumagorath
Jun 5, 2001


Who Confirmed My Block Last Night?

ArcMage
Sep 14, 2007

What is this thread?


Ramrod XTreme

punishedkissinger posted:

if tether is equivalent to USD why not just actually use USD?

You need to convince an actual bank to work with you to do that, and you also need to have actual USD to use.

SLICK GOKU BABY
Jun 12, 2001

A Little Known FACT: Burger King's Bacon King is superior to the Baconator.


punishedkissinger posted:

if tether is equivalent to USD why not just actually use USD?

There's a lot of laws and regulations when you're actually using USD for poo poo. There's IRS & FBI regulations when it comes to USD transactions and they can probably ignore a lot of it by using a pretend monopoly currency instead.

Cowcaster
Aug 7, 2002





punishedkissinger posted:

if tether is equivalent to USD why not just actually use USD?

they don’t have actual usd

Andy Dufresne
Aug 4, 2010

The only good race pace is suicide pace, and today looks like a good day to die


By pretending USD is just another shitcoin these exchanges can set up shop literally overnight

Oh and they can be run anonymously by convicted felons

Andy Dufresne fucked around with this message at 01:07 on May 14, 2021

notwithoutmyanus
Mar 17, 2009


Tether is basically closer to a crypto security. There will be others this year. My bots trading coins vs USDT via futures are the most profitable and easiest to cash out via coinbase.

drk
Jan 16, 2005


problem: most crypto exchanges are fairly (extremely) unsavory

problem: banks ask for all sorts of like, documents

problem: occasionally, even bag holders would like to cash out so they can buy things that arent crypto (or, lets be honest, buy different crypto)

solution: mint some crypto-IOUs!

Tether's real customers, and undoubtedly the major holders of tether are exchanges. Most likely, tether gives tokens to them in exchange for a short term debt obligation (this is probably what their "commercial paper" is), and the exchange instantly has liquidity in its markets. In hot markets, it all works because more (real) money is coming in than is going out.

drk fucked around with this message at 01:21 on May 14, 2021

ChronoBasher
Jul 2, 2007


ArcMage posted:

You need to convince an actual bank to work with you to do that, and you also need to have actual USD to use.


https://www.cnbc.com/2021/05/12/facebook-backed-diem-is-moving-from-switzerland-to-the-us.html


article posted:

(Diem) will move its operations to the U.S. and has partnered with crypto-friendly bank Silvergate to issue a dollar-backed stablecoin.

the last signal...
Apr 16, 2009


punishedkissinger posted:

if tether is equivalent to USD why not just actually use USD?

selling bitcoin is a taxable event, so using tether skips that if your plan is just to purchase other cryptos in the cryptocasino

Andy Dufresne
Aug 4, 2010

The only good race pace is suicide pace, and today looks like a good day to die


the last signal... posted:

selling bitcoin is a taxable event, so using tether skips that if your plan is just to purchase other cryptos in the cryptocasino

Are you talking in terms of tax avoidance using offshore exchanges that don't report to the US? Because even crypto for crypto exchanges are a taxable event, just like trading some GME for TSLA would be a taxable event.

the last signal...
Apr 16, 2009


Andy Dufresne posted:

Are you talking in terms of tax avoidance using offshore exchanges that don't report to the US? Because even crypto for crypto exchanges are a taxable event, just like trading some GME for TSLA would be a taxable event.

yeah you're 100% right, not sure why I thought otherwise

drk
Jan 16, 2005


edit: cant read posts

catspleen
Sep 12, 2003

I orphaned his children. I widowed his wife.



drk posted:

edit: cant read posts

Don’t read, only post.

drk
Jan 16, 2005


ok

https://www.nytimes.com/2021/05/13/technology/colonial-pipeline-ransom.html posted:


Colonial Pipeline paid its extortionists roughly 75 Bitcoin, or nearly $5 million, to recover its stolen data, according to five people briefed on the transaction.

The payment came after hackers last week held up Colonial Pipeline’s business networks with ransomware, a form of malware that encrypts data until the victim pays, and threatened to release it online. Colonial Pipeline pre-emptively shut down its pipeline operations to keep the ransomware from spreading and because it had no way to bill customers with its business and accounting networks offline.

should play well with regulators

Jose Valasquez
Apr 8, 2005

Bzzt Bzzt!

the last signal... posted:

selling bitcoin is a taxable event, so using tether skips that if your plan is just to purchase other cryptos in the cryptocasino

This one weird trick is not how taxes work. If you use cryptocurrency to buy anything, including other cryptocurrencies, it is a taxable event.

ArcMage
Sep 14, 2007

What is this thread?


Ramrod XTreme


Yeah, if you're literally facebook and you're foolishly sincere about it you can do it, but it's a lot of effort and a huge initial and continuing expenditure to actually do what everyone is pretending Tether does.

Being painfully sincere about it and having done all the effort means that Diem is going to be much less palatable to crypto's main users, and harder to use for their primary purposes of money laundering and IPO scamming.

ArcMage fucked around with this message at 04:14 on May 14, 2021

Flannelette
Jan 16, 2010




Invest now!

https://bscscan.com/token/0xd2602dbb063627b80d5ae671007900f558c49e35

Fur20
Nov 14, 2007

すご▞い!
君は働か░い
フ▙▓ズなんだね!



fuckelon sounds like something that evolves from eevee

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Cirrhosis Johnson
Jan 9, 2014


Why is Bitcoin going back up? Too many Nazi MAGAs buying it imo

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