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Why is Bitcoin falling?
2017-12-21, 03:28 PM,
#1
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.

Reply
2017-12-21, 03:53 PM,
#2
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.
Reply
2017-12-21, 04:05 PM,
#3
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!
Reply
2017-12-21, 04:11 PM,
#4
(2017-12-21, 04:05 PM) --- The previous admin/owner of CPAElites --- 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.
Reply
2018-01-08, 04:20 PM,
#5
Excellent post mate!! Thanks for your information.
Reply
2018-01-18, 07:24 PM,
#6
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.
Reply
2018-01-18, 08:00 PM,
#7
"What goes up must come down."
Reply
2018-02-01, 03:01 PM,
#8
Look not good for Bitcoin.

Arun Jaitley has just killed India’s cryptocurrency party

https://qz.com/1195316/budget-2018-busts...ncy-party/

[Image: rfJPvkt.png]
Reply
2018-03-06, 04:36 AM,
#9
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.
Reply
2018-05-08, 01:06 PM,
#10
(2018-03-06, 04:36 AM)LosPollos Wrote: 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.

Well said. The basis of investment, but it has been blur by greed.
Reply


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