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by thebean11 1960 days ago
> If bitcoin goes down rapidly or people start exchanging lots of tether for bitcoin (because you can't actually get USD from it) I think it will end up exposed

To be fair, this already happened. Bitcoin crashed from $22k to $4k, and this was at the height of tether worry.
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CyberDildonics 1960 days ago
That happened over the course of a year and I don't think there was a massive (enough) run on tether while it was low, since it didn't stay at that price for very long. There just isn't as much activity when bitcoin is low which I think also works in tether's favor. I think they do have significant btc backing them, just no USD.

I actually wrote a comment about their dynamic two years ago when this happened.

https://news.ycombinator.com/item?id=18222578

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thebean11 1960 days ago
It crashed from its peak to $6k in 2 months. The bear market lasted a long time, the initial crash was pretty fast when it first happened..
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kgkyltpgllg 1960 days ago
It stayed at $3k for 4 months in 2018.
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