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SBF
@SBF_FTX
My single favorite part of this thread: Its central point is that USDT FUD is massively overstated. In making this point,
@danheld
doesn't massively overstate the opposite side. He admits the nuances, and focuses on correctly balancing the arguments.
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Dan Held
@danheld
1/ Don’t Fear Tether Whenever Bitcoin has a bull run, naysayers try to cope with missing the boat by rationalizing why it will fail through FUD. Most of these are completely unsubstantiated, but annoyingly persist as negative narratives Bitcoin must fight against.
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SBF
@SBF_FTX
Replying to
@LeVraiEntruv
and
@danheld
USDT-- --very liquid on exchanges, moderately liquid for creations/redemptions --Messy and imperfect but works --claims that it's < 95% backed are totally unfounded (not to say it's only 95%!) --If there were issues with USDT/USDC it would be bad but crypto would survive
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Larry Cermak 🫡
@lawmaster
Replying to
@SBF_FTX
@SBF_Alameda
and 2 others
It would absolutely survive but short term would be quite messy imo and not good. Also Dan’s point that Bitcoin would go up if Tether was worthless is quite misguided I think. Sure BTC/USDT price would go up but there would just be a massive disparity between that and BTC/USD.
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Jesse Powell
@jespow
Replying to
@lawmaster
@SBF_Alameda
and 2 others
Tether losing value vs USD does result in BTC going up vs USD. People unaware of the lost peg see the BTC/USDT rate pumping and chase on the BTC/USD markets. BTC/USDT continues to outrun BTC/USD because of the busted rate. BTC/USD continues to chase in upward spiral.
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Larry Cermak 🫡
@lawmaster
Replying to
@jespow
@SBF_Alameda
and 2 others
Agreed that that’s what would likely happen super short term. But likely wouldn’t last for too long and then people start realizing that the vast majority of derivatives is built on Tether, China’s reliance on Tether, the role it plays in lending markets and for Binance etc.
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UPSGUY
@upsguyXBT
Replying to
@SBF_FTX
@SBF_Alameda
and 4 others
Btcusd will chase btcusdt if redemptions still happening.think of it as a country with capitalcontrols& a 2nd "legal dolar market" via some kind of swap of local securities for usd denominated securities(usually ADRs).Both will move tgthr until the official rate dollars dries off