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    • bill
      Top reader of all timeScout
      4 years ago

      This article is clickbait. It should be titled, "Why Tether is Garbage." (And yes - Tether, by the way, most certainly is garbage.) So are most alt-currencies. The more that I read about them, the more confidently I can assert that most alt-currencies are Ponzi Schemes insofar as they generate huge returns for a small number of early investors through revenue paid by later investors RATHER than from running a legitimate business. Aka fraud.

      Bitcoin & blockchain, however, do not fall into this category. And the writer is very wrong to lump everything under one umbrella. The rise and inevitable fall of various alt-currencies (many of which are full-on vaporware) will not hurt Bitcoin. Us long-term hodlers are ready for stormy weather - that's what happens when you're heading to the moon! :)

      "If traders lose faith in tether, they could end up triggering the crypto version of a bank run."

      That's just, like, completely untrue.

      "With tether’s role as an inter-exchange facilitator compromised, investors might lose faith in cryptocurrencies more generally."

      This is pedestrian speculation disguised as expert reporting.

      The only part of this article I liked was the piece about Benford’s Law. I had to read that paragraph a few times to really understand it.