USDT is 9-11 for central banks of the Bitcoin Black Swan

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By: Nadeem_Walayat

To get my crypto bear market rolling, I recently opened an account with Binance (10% trading fees discount link). Deposited £ 3600 which I quickly converted to USDT to initiate my first limit orders mainly on BTC and ETH with the aim of adding more funds and limit orders over the next few weeks. Unfortunately, when I take a closer look at the USDT Tether Stable Coin, which probably applies to most of the other so-called stable coins, I find that USDT is NOT 1 to 1 supported by what it tries to represent, i.e. what I at best USDT is backed by 75% of “safe” assets in dollars, with most of the remaining 25% may not even exist i.e. PRINTED MONEY! Probably to cover losses incurred to date, such as the loss of USDT’s parent company of USDT a few years ago, etc. So the real value of USDT is somewhere between 15% and 25% LESS than the US dollar Since its real reserves are given, as I described in my last video, there is a legitimate interest in perpetuating this scam.

The Black Swan event here is clear that USDT and the other stable coins could spectacularly FAIL and cause a collapse in the crypto markets as investors see their USDT values evaporate overnight as those whose exit Plans to rely on stable coins in times of market panic are left behind. Well, they panic that they are in crypto and they panic all the more that they fear the exchange will implode along with their crypto balances.

The current market cap of stable coins is $ 104 billion, with most of it in $ 64 billion and $ 22 billion C. Thus, they are more than capable of creating a 2008 financial crisis-style event for the crypto markets. Should they collapse, it would lead to a loss of confidence in all cryptocurrencies, which could easily bring the Bitcoin price down 85% from its high to below $ 10,000, with the other cryptos being worse! A true burst of the crypto bubble in spectacular style, a risk that most crypto maniacs do not perceive with their DIAMOND HANDS HODL mantra.

In addition, it allows printing of money i.e. USDT, MARKET MANIPULATION! Since USDT can simply print dollars out of nowhere and then buy crypto to drive prices up and thus make artificial profits on printed US dollars that are used to raise the price of crypto holdings, it likes it worked during Bull Run 2021, but it’s an ultra case of the “emperor has no clothes” while crypto fanatics talk about crypto being safer than fiat currency, which is constantly being devalued by printing central bank money . In fact, Tether behaves like a CENTRAL BANK for the exchanges, i.e. prints currencies (USDT), not redeemable, manipulates market prices, enables traders on exchanges to leverage up to X100, so much for the decentralized financing of crypto!

In fact, the exploding of Tether is not a question of IF, but of WHEN! And the exit door will be pretty small. So at least understand that there are NO STABLE COINS, there are UNSTABLE COINS! No matter what they state on their websites etc, they are ALL INSTABLY because they will ALL FAIL if USDT fails, just like Lehman Brothers ALL BANKS FAIL! And this time no central bank will step in to save the crypto world. In fact, I would be surprised if central bankers weren’t already aware of this and could play a collapse of the crypto space so they could step in and take control of the crypto markets through tight regulation to prevent another collapse in the tethered world. Style to prevent the market.

Now all exchanges are using the stable coins as a means of sucking fiat currencies into FAKE unstable equivalents, giving retail investors the illusion that they are holding dollars, for example, when they are actually holding something like mortgage-backed securities and we all know what happens to them !

Seriously, folks, the more I look under the hood of Tether, the more convinced I am that a chain reaction of events could lead to a sudden loss of confidence in USDT that would lead to the collapse of the entire crypto market within a few hours.

USDT is 9-11 for central banks

Regardless of the benefits of blockchain, central banks cannot allow independent currencies to circulate on any significant scale. So, turning a blind eye to the USDT Ponzi scheme, as it is expected to implode, allowing central banks to step in and RULE the exchanges and to some extent cryptocurrencies to prevent such Ponzi schemes from falling into Future Collapsing Markets Explains Why USDT Got So Far Away. The central banks understand very well what is going to happen and therefore deliberately turn blindly so that in retrospect they can wage their war on crypto without great resistance from a destroyed crypto market and at no cost, as they, unlike the banking system, which they DO NOT have the crypto -Save shadow banks i.e. a collapse of Tether will NOT have any impact on the banking system so let it grow until it crashes the crypto markets. This is another reason to be careful about how much you’ve deposited on exchanges rather than just held in USDT. Investing in cryptos IS VERY HIGH RISK!

This article is an excerpt from my extensive analysis of the crypto markets, including a detailed Bitcoin price trend forecast that was first made available to Patrons:

Bitcoin Bear Market Trend Forecast 2021 and Model Crypto Portfolio Buy Levels

Invest in the Tulip Crypto Mania
Evaluation of the Bitcoin price trend forecast
knowledge gained
Cathy Crypto Woods view of Bitcoin
BITCOIN HALVINGS TREND TRAJECTORY
Stock to Flow Infinity and beyond!
Bitcoin, Cryptos and the inflation megatrend
Black Swan 1 – will cryptos be banned?
Black Swan 2 – GOOGLE
Black Swan 3 – USDT Tether Unstable Coin Ponzi schemes!
BLACK SWAN 4 – Bitcoin 51% network attack by China?
Black Swan 5 – Bitcoin is already out of date
US trend towards hyperinflation
BITCOIN TREND ANALYSIS
Bitcoin Bear Market Analysis – How Deep Could It Explode?
Bitcoin trend forecast
Bitcoin Probably the next price target for the bull market in the long term
Alternative scenarios
My crypto bear market investment strategy
Crypto 1 – Ethereum (ETH) $ 2600
Crypto 2 – Bitcoin $ 40,375
Crypto 3 – raven coin $ 0.078
Krypto 4 – Cardano € 1.59
Crypto 5 – Pokadot $ 25
Crypto 6 – ChainLink $ 26
Cryptos 7 to 10
Creating the perfect crypto
How to invest in crypto without getting scammed
CHIA FRAUD COIN
Binance vs Coinbase
Have the ARK Invest funds bottomed out?

Which was first made available to patrons who support my work. So for immediate first access to ALL of my analyzes and trend forecasts Then consider becoming a patron by supporting my work for just $ 3 a month. https://www.patreon.com/Nadeem_Walayat.

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While my recent in-depth analysis warned of the risks of the financial crisis 2.0 – Invest in a stock market with bubble mania heading towards the financial crisis 2.0 CRASH!

My analysis plan includes:

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Your crypto’s investment analyst.

Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has more than 30 years of experience in derivatives trading, portfolio management and financial market analysis, including one of the few who is both expected and Beat the 1987 crash. Nadeem’s forward-looking analysis focuses on UK inflation, the economy, interest rates and the property market. He is the author of five e-books in the The informationlation mega trend and Stocks stealth bull market Series that can be downloaded for free.

Nadeem is the editor of The Market Oracle, a FREE Daily Online publication Financial Markets Analysis & Forecasting, which presents in-depth analysis by over 1000 skilled analysts on a range of views about the likely direction of financial markets, allowing our readers to form an educated opinion about future market direction. http://www.marketoracle.co.uk

Disclaimer: The above statements are for general information only and are not intended as investment advice. The above information and analysis is obtained from sources and using methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult their personal financial advisor before engaging in trading activities.