> These critiques never seem to address the most parsimonious explanation for periods of increased Tether issuance, which is that they are driven by genuine demand for bitcoin, and much of that demand is routed via Tether
The bigger question is: Why are so many institutions using Tether to purchase 7-8 figures of bitcoin at a time instead of simply engaging with any of the well-known institutions who will facilitate the purchase directly? What do all of these buyers possibly gain by using an intermediary currency and funneling all of their money through the Tether company first?
The only explanation I can come up with is that Tether is being used to skirt financial regulations or launder money, which doesn't bode well for Tether either.
> The only explanation I can come up with is that Tether is being used to skirt financial regulations or launder money, which doesn't bode well for Tether either.
Could it not be possible that cryptocoins has become a massive world wide gambling area? People betting on the prices going up or down, moving their assets between floating cryptos and Tether.
> The only explanation I can come up with is that Tether is being used to skirt financial regulations or launder money, which doesn't bode well for Tether either.
This may well be true. But it also seems to be the case that for a long time, Tether was the only game in town, and institutions built integrations around it. Someone starting out now might not build on Tether.
The bigger question is: Why are so many institutions using Tether to purchase 7-8 figures of bitcoin at a time instead of simply engaging with any of the well-known institutions who will facilitate the purchase directly? What do all of these buyers possibly gain by using an intermediary currency and funneling all of their money through the Tether company first?
The only explanation I can come up with is that Tether is being used to skirt financial regulations or launder money, which doesn't bode well for Tether either.