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Comment by nmlnn | Hacker News Reader

Uh.. one little problem with this kid's analysis. There are multiple USDT/USD markets (https://www.tradingview.com/symbols/USDTUSD/)

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Yes, three other markets accounting for a total of... $4 million daily volume. That's less than many random Uniswap tokens, and could consist entirely of some minimal market making. I've done stablecoin market making myself, it's not very profitable but the low inventory risk makes it attractive, as the ratio always trends back to 1:1.

If people want to short bitcoin or tether, they should do so. However, I don't really get all the internet whining. If they're right they'll make a lot of money. I don't buy these concerned citizen FUD posts though, they reek of manipulation. If there's one thing I've learned over the last 25 years it's.. don't trust random people on the internet.

Taking a position and then publicizing the position and the thesis behind it is standard procedure everywhere in finance. It's a way of accelerating pricing-in of the information.

You can indeed just short an artificially inflated asset, but if the sham is only revealed long after you're insolvent, you lose your money.

BTW, your bull case for Bitcoin wasn't built from trusting random people on the internet?

Nope, that's why I'm so confident. The entire point of Bitcoin is to remove the need for trust and replace it with network consensus rules and proof-of-work, both of which you validate yourself. Since, to me, that's far superior to the current system - I just see it as an inevitable transition.

USDT-USD markets are indeed marginal. however, implied USDT price using BTC as a cross shows USDT is valued pretty much at parity with the dollar by the market:

https://www.tradingview.com/symbols/spread/BINANCE%3ABTCUSDT...

Yes, and that parity is precisely the thesis behind the author's contrarian short position.

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