That they might be printing tether with nothing to back it up, which props up bitcoin price via artificial demand such that if tether ever gets a bank run or implodes, so too bitcoin
Discussion
Something is off. BTC is backed by mining expenses which is a hard expense no matter what currency you measure with just like gold mining. USDT is backed by USD assets even if they collapse it affects the USD pair so BTC/USDT will rocket and USDT/USD will tank.
If USDT/USD tanks because tether doesn’t actually have the t bills or whatever else in their coffers, wouldn’t bitcoin also crash if a big chunk of it was bought with worthless USDT? (Quite honestly I think people would just scoop it up like post FTX)
But really the only difference I see between the collapse risk of USD from banks and from tether is that if tether does implode, the government has a possible political issue with bailing out a foreign company whereas they don’t with US banks—although does anyone care anymore, they prop up many cross national corporations all the time
I don’t think so, what it really crushed is USDT. Whoever holds that usdt from that trade is rugged. It will have temporary effects on everything though.