Will tether crash Bitcoin and Cryptos?
Tether is the biggest ticking time bomb in all cryptocurrencies. For those that are unfamiliar with tether, it is a cryptocurrency that is supposed to be pegged to the USD in a one to one ratio (1:1). Although there have been a lot of speculation over the past couple of months that tether isn’t really backed by anything or if it is backed by something, its fractional reserves rather than 100% backed by the USD as they advertised.
Tether kind of fell out of the news cycle for a while. Nobody really talked about it since the hack back in November which was around $30,000,000. However, tether is a complete rip-off and a total scam. It doesn’t matter if it’s 100% legit because eventually, the US government is going to get tired of it as it continues getting larger and they are going to shut it down. Plain and simple! They are going to put every effort of their manpower to ensure that it can no longer operate because tether is to bypass regulations by using a cryptocurrency rather than the USD itself.
Eventually, the governments are going to catch up with it and even if it isn’t a scam, once it grows to a certain size, the US government or some other government will try to go after it since it is only trying to bypass certain regulations. But it really does look like a scam and a lot of people are now talking about it again because of the fact that their relationship with their auditor has dissolved. This usually only happens when people don’t like what the auditor has to say. What likely happened could be that they the investors had something that was closer to the truth and tether isn’t comfortable with that. They don’t like the idea of that being revealed and so they decided to terminate their relationship. As a result of that, people started talking about tether and its printing ideas in order to pump cryptocurrency prices.
The simple fact remains that; if it looks like a duck, walks like a duck, acts like a duck and quacks like a duck, then it’s probably a duck. The same situation is true for tether; if it looks like a scam, acts like a scam and quacks like a scam, then it’s probably a scam. If you look at the tether chart over the past year, you will see how much it has grown in terms of market cap. It does grow from $15,000,000 to about $2,200,000 and just in the month of January, they have printed $850,000,000 worth of tether. Think about this for a second. You don’t have to be an investigator to realize this. It is so obvious and blatant that they’re trying to rip people off and if you’re still using tether, stop!!!
The only reason to use tether is that it’s a safe place to store your money but in actual sense, it’s not. Tether will eventually collapse and you wouldn’t want to have your money in tether when it happens. Even if you’re one of those people that only uses tether for five minutes at a time, it’s too risky. It is advisable to invest in a volatile asset like Bitcoin and wait for it to get moved over to a value that you can exchange for fiat rather than move it into tether. You should be able to accept the timing risk rather than putting yourself in tether which is a complete ticking time-bomb that will eventually blow up and take down a lot of the market with it.
Maybe you should accept the fact that making stable cryptocurrencies may not be possible at this point in time. The field is far too volatile. It is amazing that tether has stayed this close to $1 despite the fact that so much is going on to suggests that it’s not worth anything at all. Well, that’s not true; it’s worth something but well maybe not. It depends on if they take the money and run, by then it will actually worth absolutely nothing.
Remember that one of the biggest theories is how interconnected is tether with BitFinex. Given that BitFinex is practically one of the largest exchanges in the world, then we are in a situation where if tether goes down, there will be a catastrophe in the entire market. BitFinex is one of the next Mt. Gox. Mt. Gox failed because of negligence, BitFinex might fail due to maliciousness or mal-intent. This will result in increased regulations and a number of other things coming into the field that are a huge concern.
If you’ve seen tether trying to defend themselves against BitFinex for example, you will see that it’s pretty obvious it’s being run by immature people that don’t know what they’re doing. Again, you don’t have to be an investigator to see that this is a scam. So many people are blinded by the idea that you need a 100% evidence for them to be certain about something, you simply don’t. Again, if it seems like it’s true or if it seems too good to be true, then it’s true. Don’t be one of the people that are using tether and its volume seen in all of these different markets using it.
You might not know exactly when tether is going to collapse and you like the idea of being able to cash out to something that is a little bit more stable. Also, when markets become volatile, you don’t want to wait for that slight delay until you can get on to an exchange where you can actually cash out for real USD.
We can’t predict what is going to happen when tether finally collapses and I don’t know what that is going to do to Bitcoins price. But I’m certain that if there is one element that has the most systematic risk, it is by far tether and BitFinex. I advise you watch the situation very closely and see how the communication plays out. Observe how people are starting to feel about tether. I may not know when it’s going to blow up but all I know is that it is going to blow up at some point in the future. So stay away from tether!