The charts are starting to look very scary out there.
BTC is making its way back to the lows and looking like it might try to break them.
The likely driver has to do with rumors that Tether is about to explode, dragging markets and coins down with it.
The resulting price action would probably take BTC down to $9k, and possibly all the way down to $6k-$8k.
You can imagine what steem and most of the altcoins will be at if btc plunges by roughly 50% from current levels.
However, there are a lot of people stating they want to buy btc down at those levels, so if it does drop that far, it will likely be quick as buyers step in to hold off the plunge.
Where do you think we are about to go?
The Tether FUD is over exaggerated.
You think so? Why do you say that?
As long as it doesn't turn out to be an exit scam, if Tether begins to prove insolvent people will sell back into ETH and BTC. Some will be left holding the bag, and distrust for centralized exchanges will continue to grow. In the end, I think that would push us in the right direction. However, I don't see it actually happening. Why would Tether need come up with all of the actual dollars supposedly backing the Tether? It is like any fractional reserve banking system in place today. The world already runs on this type of financial system. Unless a great collapse happens causing many to withdraw at the same time it is business as usual.
But if they say there is enough dollars to back each coin and then it is proven that there really isn't? Plus when you factor in that those coins were used to purchase BTC, thus propping it up with artificial "dollars", doesn't that possibly crush confidence? As well as possibly make Bitfinex insolvent? Which would cause major forced selling of everything on that exchange? Then if there are other exchanges doing something similar with Tether, possible cascading effect?
I agree. There would be lots of pressure on Bitcoin since so much is bought with dollar backed Tether. and it wold cause a cascade in all of the currencies. Let's hope it does not happen.
Fractional systems collapse when there is a run on the banks.
You give the reason for why it can't stay solvent. You literally can't cash out. Someone has to hold the Tether bag.
Yeah been ugly since 2018 begin except the first 10days...at this point either the people believe or we get back in our mud huts and await our rations from the bankers.
Hi I'm new to steemit and was wondering what your thoughts on electroneum were. Thank you for your crypto post.