Discord: https://discord.gg/wye2Kt2 Twitter: https://twitter.com/BobbySibert My last video on the Tether controversy has gotten a LOT of unexpected attention (including a retweet from Bitfinex’ed himself) so I wanted to follow that up with a crash course in intellectual honesty, and rigorous research. By nature I am a contrarian, and I routinely challenge my own views, so I’ll be bringing that philosophy to this channel. I’m not here to stroke your ego or help you create an echo chamber for your own beliefs. You should be open to all sides of a debate, and be able to explain THEIR position as well as YOURS. In this video I’ll be defending Tether, since no one else will. There are many reasons why Tether could be a very GOOD thing for the crypto space, and even if you aren’t using it you are benefitting from it. It’s easy to forget that the people running these business have real lives, and much at stake, and if you believe in the honesty of people you may see their side of the argument. DISCLAIMER: The arguments in this video do not necessarily reflect my own views, and should not be taken as legal or financial advice. Listen to both sides and make your own judgement.
Interesting points. But, I don’t agree with your audit difficulty thought. If their model is simple (no mining, no lending, …) and each coin is backed by $1, it should be a very simple, non-sketchy audit to perform. Verify bank (financial entities) account balances against Tether coins in circulation. OK, add in revenues/expenses from exchanges, as well. Bingo! I’m guessing that greed has gotten into the picture, and they started to do sketchy Wall Street type shenanigans to increase profitability (i.e.2008 stuff; derivatives lending, etc), it got out of hand and they are now sinking. Cranking up the printing press when prices have fallen, is usually the last gasp to recover what’s been lost.
Man, you saying the auditors started to work with tether and then find out it’s “too complex” is the same thing a surgeon cuts the patient, look at intestines and say “oh it’s too complex for me”. No professional will start working and sign an agreement (and announce that to everyone) without doing a research before .
I shall join the discord chats! Interesting perspective indeed! you tell us how it is,No sugar coating things like some other channels. id say 90%miners and traders,watch youtube! if atmosphere is “sell sell sell” then we are making crash closer. if we say how things truly are,it makes us think,rather than hype,FUD and act out of fear of losing… Content on youtube literally has an effect on the market! (English is not my primary language)
It’s incredibly difficult to defend the business model. In the worst case scenario they are practicing fractional reserve “banking” and in the absolutely best case scenario they have 2B$ in various bank accounts collecting interest. That’s 40 million dollars per year if held in a savings account. Maybe more if held in a decent government savings bond. I don’t buy the latter because the opportunity cost plus human greed factor just doesn’t jive. The idea that a corporation that liquid existing today? I want to see the audit so I can eat my words. Just to be in awe
I can’t wait for you to justify BITCONNECT! Your argument that it’s hard to audit crypto company so we should take face value what Tether is telling us. NO! An audit company’s job is NOT to “sign off” as you put it but to verify that company’s financial statements including P/L & Assets/Liabilities in accordance to GAAP established by the SEC. Just take a snap shot in a point in time like December 31 and established how many Tether have been created and verify the USD balance in the bank holdings. The biggest problem will be in the near future when people are trying to convert their USDT to USD. But if you read the fine print in their Term Of Services, Tether is under NO obligation to redeem them. Please go to Tether.to and click on legal section and view section 3 which quotes: “Tether must and does at all times reserve the right to refuse to issue or redeem Tether Tokens, without limiting the generality of the foregoing, if any act, conduct, transaction, omission, or misrepresentation” There will be a mad rush to Tether to redeem USDT to USD but many will come to realize that the number of Tethers DO NOT equal the number of USD in the bank holdings!
Absolutely love the direction of this channel. Of course there are channels which try to be as unbiased as possible, but a channel that actually argues for both pro and con in a convincing way? That’s new and I love it.
Cant say I agree with the auditing argument either…their model is about as complicated as my Internet banking account…money goes in…money goes out, its all electronic transactions, automated and one would hope, fairly comprehensive software….yet they cant even provide a delayed order flow or order book sheet, or daily summary…Think about this for a moment, If you can buy and sell Crypto, using a token, that you own, regulated and generate, absolutely unrestricted…that isn’t backed by anything, given there integration into every exchange, then you could simply buy up all of the Cryptos, and then cash it into USD….Am I the only one fucking seeing this!!!! Look at the massive hyper inflation and deflation of Cryptos…Bitconnect 2.0…
This is awesome, I really like what you are doing. Presenting a well-reasoned argument on both sides of a debate is lacking not only in the crypto space, but most Western mainstream media as well. Just don’t go too deep down the rabbit hole and pull a Tyler Durden. Or do, but please give a heads up first, I’ll need to make a lot of popcorn.
Everyone says that tether prints money out of thin air. But is it really the case? Look at the market cap 😀 Theirs supply is backed by market cap which is usd, btc, eth and other cryptos. It doesnt have to be all usd in their reserves? There is only how much you put in, if people starts selling usdt the supply is also going to drop. Doesnt it? SibertSpace you are the first youtuber that i saw that actually thinks before making a video about tether.
Well I give this video a thumbs up. The issue I see with Tether is if everyone runs for the bank at the same time and tries to withdraw their money. The problem Tether it is not that easy to do. So they can keep printing more money. The question is, if this keeps going on and on they are going to have to increase the amount of money they create. So when will be the tipping point? Government regulation is the easy answer, but failing that what would it be?
I love that you added the fractional reserve argument. Tether probably does NOT have 1:1 amount of dollars backing up but thats okay, because its practically impossible that every single owner of USDT would pull their money out the same time. Of course the question is still how much reserves Tether has, I hope its over 20%. Still it wouldn’t make sense to do Audit since if masses would notice that they have like 20-30% USD in reserves they would panic and pull their money out which would lead to crash
><><><><><><>< Monetize Your Site More Effectively <><>><><><><><><><><><><><><><> AGENDA: paste Affiliate Codes of CJ & Cuelinks on flitmart It looks like infolinks.com and viglink.com are better substitute of Cuellinks Adsense>Media.net>Infolinks>Viglink>cuelink >>>>> Ad provideers scale and Size Read more…
LocalBitcoins.com Published on 27 Aug 2014 Buy and sell bitcoins with the LocalBitcoins ATM. richardtrenes8 months ago I will buy one and place them here in Southern Spain in the next few weeks REPLY HydroTekZ3 Read more…
Bitnational Published on 11 Jul 2017 How to withdraw cash from one of our Bitnational Bitcoin ATMs. www.bitnational.com Rohit Kumar1 month ago Who all came here for Nicole? REPLY Ray Casey3 months ago Cult REPLY Read more…