In case you haven't noticed. Tether / Bitfinex have been mass printing USDT since last week to keep the price of Bitcoin up. They printed another 100 mil today and have injected at least 500 mil recently. The market is completely manipulated at this point and tainted since you can't cash out in USDT so they are buying BTC and whatever altcoins to cash out to USD instead. The price of ALL coins at this point is artificially inflated and the news about Tether / Bitfinex has been kept quiet as well censored in some cases so everyone doesn't all cash out at once and crash everything including the exchanges. You NEED to wake up and read up on the situation. There has been no audit for a long time now despite lying that they provide on a daily basis, Tether / Bitfinex are the same people which is perfect for wash trading and USDT is NOT backed by USD. So the question you need to ask is, what happens when they become insolvent because there is no actual backing of USDT, or there is a govt crackdown or whales realize the ponzi scheme and make their exits. It won't be just about who is holding USDT (those people will get screwed the most) but ALL coins have been bought with USDT at some point and are currently NOT worth the value they have been inflated to be. Imagine I magically printed 2.5B of my FunnyMoney coin saying it's backed by USD and used that to buy Bitcoin through an exchange that I own and then moved it around or used it to buy altcoins and eventually cash out to fiat through different exchanges. Everyone's portfolio is going to tank once people realize the wash trading going on and the other exchanges are going to halt withdrawls cause they won't be able to handle the influx of everyone trying to cash out their BTC or ETH or whatever to fiat. This article is a good starting point and then DYOR from there on: https://steemit.com/cryptocurrency/@cryptoscopia/making-sense-of-the-tether-situation
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I'm not entirely sure what will happen and how USDT is really used right now. Although it's plausible that USDT is used to inflate prices, but I believe there is also an alternative.
It seems USDT is printed at times when BTC price goes down. It is possible that a lot of poeple want to exchange BTC or other cryptos back to USDT at time like these, hence the demand for USDT rises whenever BTC price is going down and new USDT is printed. I really hope it's this scenario and not the other one.
But I imagine that at some point the USDT scam will come to an end. There is just no scenario in the world there I believe that they have enough USD for each USDT and when that happens people holding USDT will lose a lot of money. I hope the extend of it will not have a big influence on the rest of the market, but if I had USDT I would try to get rid of it asap.