If two billion tokens which people have taken to be as good as USD have entered the market, they will have inflated the price of BTC and other coins
>> in the end it's those that hold USDT will run to sell it either for USD or BTC, which would push BTC price even higher? now that would be ironic!
The price in USDT and USDT-only exchanges could indeed rocket, but the price in real actual USD would be expected to fall. I don't think that's ironic ... ?
--edit-- I seem to be rate limited at the moment so I am going to reply to the post below, here.
Why do you think, in a situation where tether fails, that the BTC/ETH price on bitfinex would change?
The price of BTC in tethers may rocket, but the price of ETH in tethers also would rocket, as nobody would want tether. The price of ETH in BTC is unlikely to move much.
There's no arb opportunity I can see.