New study says last year’s record-breaking Bitcoin price was actually a fraud
For those of you not familiar with Tether, it’s a token meant to help traders buy and sell cryptos for US dollars across exchanges and increase the speed of transfers. Rather than worry about fiat transfers, you can convert your money into Tether, and then do whatever you want with them in the crypto world. Every single Tether should always be valued at $1, and each Tether should be backed up by a real dollar. That sounds great on paper, and it’s supposed to provide security to Tether users.
That’s becauseTether should not be affected by bull or bear runs that routinely affect the crypto market. In fact, Sunday’s bloodbath did not affect the digital currency. So that’s all great news, yes?
Well, in spite of the various infusions of new Tethers into the market, nobody can prove that the real dollars backing them up exist. And currently, we have more than $2.5 billion Tethers out there, which means a bank should hold $2.5 billion in real dollars.
With all that in mind, let’s look at what the new study is saying about Bitcoin manipulation. Researchers from the University of Texas on Wednesday published a paper (via Business Insider) that makes a remarkable claim.
The researchers found that the price patterns of Bitcoin are “”most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices.” The researchers looked at the relationship between Tether and the price of Bitcoin between March 2016 and March 2018 focusing on last year. The price rose to almost $20,000 in December and then dropped to $6,600 by March. It’s now trading below that, with price hovering at around $6,480 at the time of this writing, and dropping.
“Tether seems to be used both to stabilize and manipulate Bitcoin prices,” they said. New Tether coins were apparently created and used to buy Bitcoin when the coin was in low demand.
News Link:
http://bgr.com/2018/06/13/bitcoin-price-today-vs-ethereum-vs-ripple-vs-eos-manipulation/This was a news from BGR 4 days ago, what are your thoughts about this? Do you think Bitcoin is rapidly/slowly decreasing due to these crytocurrencies? I hope you find this post useful.
