Why is Bitcoin falling?
2017-12-21, 06:58 PM,
Why is Bitcoin falling?

I've seen this on Quora and I wanted to share it on here, looks interesting!

Because Bitcoin’s price has artificially been driven up by an elaborate fraud involving the cryptocurrency called Tether. Some people are now aware of this and are selling their Bitcoin.

Tether is a crypto that’s being generated at will by Tether Limited. It’s pegged to the dollar at a 1:1 ratio, which means they’d have to have 1 real dollar in reserve for every Tether in circulation. They claim they do, but it’s glaringly obvious that they’re lying.

They started the year with less than 10 million Tethers in circulation, but over the last 8 months they have minted over a billion dollars worth of them. What is even weirder is that their business exploded after all US banks cut them off, which means customers have no way of wiring money to Tether when buying Tether tokens. Yeah.

Furthermore, Tether is majority owned by Bitfinex, one of the largest crypto exchanges in the world. What many people think is happening is this:

  1. Unbacked tokens are being created out of thin air by Tether. They are then transferred to exchanges like Bitfinex.
  2. The market trusts that they’re worth 1 dollar each. This gives the illusion of massive amounts of money entering the market.
  3. This fake money is then used on the exchanges to go long on Bitcoin. Sites like Bitfinex accept Tether as collateral (go figure) on margin trades, greatly amplifying the effect.
  4. Bitcoin’s price goes up because there’s an illusion of high demand. Bullish margin positions tempt people into buying “hot” Bitcoins because “everyone else is going long too”. FOMO at its best.
  5. Guess who sells the “hot” Bitcoins for real money? Bitfinex et al. Bingo.
Tether has minted half a billion’s worth of tokens just in the last 3 months. Last week’s 125 million Tether flood managed to pump up Bitcoin about $2,000 (a 33 billion dollar increase in market cap). My guess is they were trying to protect Bitcoin’s price from the new CME futures. But the rabbit seems to be out of the hat, and now the price is back below the previous price levels again. Their printing shenanigans are just not enough to keep up with the bears anymore. Tether is spread way too thin and drawing too much attention.

Bitfinex and Tether will soon get “hacked” and declare themselves insolvent. Then, armageddon.

Latest Thanks - View all

t4nk(2018-01-19 08:06 PM) COBNET(2018-01-08 07:53 PM) jack007(2018-01-08 07:49 PM) EnChanter(2017-12-22 12:12 AM) 

If You Think That Any Of The Staff Team Is Using Their Privileges In A Wrong Manner
You Can Always Contact The Admin → HawkEye
Share This Thread :

2017-12-21, 07:23 PM,
Excelente article! Very interesting, Tether is used a lot to freeze and continue the long run. I really want to see Bitcoin going down and Bitcoin Cash going up. But, pretty sure that will never happen, both will go up.
Latest Thanks - View all

t4nk(2018-01-19 08:06 PM)  LB'Decoy(2017-12-21 07:32 PM) 
2017-12-21, 07:35 PM,
And there was me considering to get into this in the new year, I think I'll pass on that now then thanks.

I love that website Quora btw, it's really good!
2017-12-21, 07:41 PM,
(2017-12-21, 07:35 PM)HawkEye Wrote: And there was me considering to get into this in the new year, I think I'll pass on that now then thanks.

I love that website Quora btw, it's really good!

I purchased a few mBTC last week, I am not sure if above information is correct or not.
2018-01-08, 07:50 PM,
Excellent post mate!! Thanks for your information.
2018-01-18, 10:54 PM,
I really enjoy Quora as well.

I think this could have a contributing factor to Bitcoin's recent rise, but I question it being the #1 reason.
2018-01-18, 11:30 PM,
"What goes up must come down."
2018-02-01, 06:31 PM,
Look not good for Bitcoin.

Arun Jaitley has just killed India’s cryptocurrency party


[Image: rfJPvkt.png]
2018-03-06, 08:06 AM,
Great post, lots of people freaking out about crypto on my fbook feed now. I think it's still okay to get into it, just don't think there are going to be a lot of new easy crypto millionaires, so invest what you can afford to lose.

Related Threads
Thread Author Replies Views Last Post
  2 Best ways to earn Bitcoin for free MianhaeX 3 194 2018-04-17, 05:06 AM
Last Post: LaCrema
  How many of you bought Bitcoin and altcoins in the recent dip? neverstop 13 1,255 2018-02-13, 10:34 PM
Last Post: Elites_Mate
  Reason to buy Bitcoin ropebin 6 483 2018-02-02, 07:52 PM
Last Post: ElitesCPABoss
  How to earn money with Cryptocurrency (bitcoin,litecoin,dogecoin, ethereum) vicsrel 3 363 2018-01-30, 11:07 PM
Last Post: iBrobot
  Bitcoin Becoming Part of Everyday Life in Japan salen72 3 329 2018-01-17, 09:24 PM
Last Post: NAPK1NS

About Us | Contact Us | CPA Elites | Advertise | Stats | Staff Team

© 2013-2018 CPA Elites Ltd
Enhanced by MyBB and WallBB
Return to top