This is a claim that the run-up in Bitcoin correlates strongly with large Bitcoin purchases using a cryptocurrency called Tether. Tether isn’t mined - it’s issued by the company that created it, and it’s supposed to be backed by $1 US for every Tether unit in circulation. The claim in the article is that it’s not backed by anything, and that the company issuing Tether is avoiding being audited.
I don’t know, brittlerock :), but I was hoping that maybe someone here had more information on this. For me, it’s one more reason not to dabble in Bitcoin, unless I have access to a fast computer and cheap electricity for mining. But I’m not going to plunk down, say, $2000 (dollars or Tether bucks) for a bit of Bitcoin, fraud or not.
Ed,
I won’t belabor this. I don’t care what happens with the price of Bitcoin. As far as I’m concerned, it’s just another currency - or gold, or gems, or antiques, or paintings, or old instruments, or what have you. There’s no underlying productive capacity. Buying this stuff puts you entirely in the whimsical hands of “the market.”
In my book, that automatically makes it speculative. It is not an investment. I speculate a little tiny bit with some high risk companies or options. Less than 1% of my portfolio. I know, a bundle can be made with speculations. I think George Soros originally made most of his money on currency speculation. Just not my game.
I’m worried a bit about Bitcoin getting big enough that the crash causes a recession or depression. I suppose it couldn’t get nearly as big as the housing bubble, but who would have expected the price to get to five figures?