In the early days Tether-Bitfinex tried to manage the peg themselves. Eventually they lost control and then designated the peg to each exchange (statement below). There is no single peg. Each exchange must manage their own peg.

What that statement says is only exchanges or qualified corporate customers can aquire/dispose of USDT. When a miner/trader deposits new btc on an exchange (net inflow) and sells it for USDT, the exchange must obtain USDT to balance reserves, otherwise USDT's premium will go up.

Read 7 tweets

SolidusMax

@SolidusMax

24 May 20

99% of Bitcoiners you see talking about gold have no idea how the market works or even know its history. They just Google everything for info.

Bitcoin is nothing like gold. Period. If you can't understand this you'll never realize how stupid the CT debate on gold vs bitcoin is. Most of the time commentators or outlets talk FOMO while trying to sell something (book, platform, service, subscription). Wake up.

This delusion also explains why Tether and its exchanges are able to create counterfiet dollars to trade with. If crypto traders can be convinced this easily, or trade on with no checks and balances on reserves, they are highly likely to lose everything at some point.

Read 4 tweets

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!