Bitcoin has many enemies in the traditional finance sector, and if this is an orchestrated attack on bitcoin, then preventive measures must be taken. I wanted to get people's thoughts on the topic of Tether in relation to the rise in prices.
Please take a look at the two articles below:
Tether Continues to Issue New USDT at an Alarming Rate
http://www.newsbtc.com/2017/11/10/tether-continues-issue-new-usdt-alarming-rate/Rapid Increase in Tether Supply Raises Concerns of Manipulation, Creative Accounting
https://cointelegraph.com/news/rapid-increase-in-tether-supply-raises-concerns-of-manipulation-creative-accountingThe articles seem to imply that the tether tokens are not truly backed by fiat currency. They are not redeemable for fiat. Since normal cryptocurrency values are based on supply and demand, tether goes counter to the fundamental principle of cryptos. There would have to be enough demand for tether tokens to warrant the price of one USD per tether token. If this is not true, then the value that each tether token has is not real.
If you look at the chart for tether, it shows that the price of tether relative to btc is falling to zero, which means demand for it should not be high. Crypto traders should be holding their reserves in btc, not in tethers.
https://coinmarketcap.com/currencies/tether/#chartsIf people realize that the price of tether is not real, then people and exchanges are going to start dumping them. There could be a run on the exchanges.
The articles also imply that the infusion of tether into crypto markets have coincided with the price rise, especially in November. Could this mean that the btc price rise this year was artificially generated?
Could it be that Tether is colluding with someone to drive up the price of btc and other cryptos? Maybe they are trying to buy up 51% of btc so they can do an attack on the network? Or maybe they are trying to buy up as much bitcoin as possible to take it out of circulation, and flood the market with it later on to drive down the price. At current prices, if there was a giant crash, it could take years not just for btc, but for all cryptos to recover.
In essence, I am saying that Tether could be a Trojan Horse for cryptocurrencies, meant to bring them all down. I want to see cryptocurrencies succeed, but if this bull run was artificially generated by a malicious actor, then people need to be aware of this.
In addition, the offering of btc futures on the CME opens up the possibility of BTC's price being affected by futures. If an entity with large pockets decided to short BTC massively, it could also destroy its price.
Bitcoin has many enemies in the traditional finance sector, and if this is an orchestrated attack on bitcoin, then preventive measures must be taken. As for preventive measures, one that I can think of is to slowly phase out Tether from the crypto community, rather than have everyone get rid of it at once.
Also, rather than call for audits on the Tether company, tether holders need to start demanding to get fiat currency for their tether tokens.
One country has banned Tether from their markets. Learn from that country why they did that.
Also, bitcoin should make it not possible to short the btc price on the CME, in order to stop attempts to drive down its price using futures.
Maybe I am missing something and I am just being overly analytical. If you see problems with what I'm saying, please let me know.
Thank you, have a nice day.
Poll
