Let's play this scenario out... — @CryptoSorted on read.cash

@CryptoSorted 16 October 2021 more from that month

Let's play this scenario out... #Tether (USDT) currently has a marketcap of about $70 billion with Bitcoin marketcap at $1.17 trillion. I can't see why #USDT failure will bring BTC or the entire crypto market of over $2.6+ trillion down. How would a $70 billion failure cause a $2.6 trillion market to a crash? If people want to exit USDT enmasse, they have 2 options: 1. Buy BTC or any crypto of their choice with USDT. I see this will pump the price of BTC further. 2. Approach Tether to redeem it for actual dollar. All I can see with USDT failure is $70 billion leaving the crypto market which will bring the entire marketcap to about $2.53 trillion. Which is nothing unusual in this space. Or, I'm I missing something here? #cryptocurrency #crypto

1 comment

@technicallyproduct 16 October 2021

I think there are doubts around how easy/possible it is to actually redeem Tether, and whether Tether is backed by a sufficient amount of USD. If it fails, it will fail incredibly quickly. I'm sure it will dent the wider crypto market, but BTC may be seen as something of a safe haven in that circumstance.