It was definitely not a deliberate attempt by me to quote out of context. I admit
that I´m not as familiar with memorandums like these as you are and I was wrong there.
After reading your post I read the memorandum again and it seems that you are right and
that I was wrong.
No worries, as I said I was giving you the benefit of the doubt. I was just a bit annoyed as I thought I had convinced you the last time we went through this.
The idea that any accountancy firm would be fooled by a trick like that seemed so ludicrous to me as to be laughable before I even read the report. I just find it frustrating to see people still repeating it.
I also agree that privately held companies are under no obligation to publish audits.
However, the business of Tether is not your standard business and is founded on the belief
that the outstanding USDT are actually backed. Don´t you think that it would be in their best
interest to provide audits regularly? Especially, because they claim right on their website that
they are subject to "frequent audits". Isn´t it noteworthy that there never was a single
audit released since Tether was founded in 2015?. Maybe I just have a different understanding
of the term "frequent" than the guys at Tether.
It could be helpful in some respects but as above would also just give the bloggers more source material to misrepresent.
Besides, I agree that large amounts of money poured into Bitcoin due to the bull market
and the increased media coverage. However, Bitcoin has lost nearly 50 % since its ATH
and the media coverage has receded. Therefore it is not entirely logical to me that Tether has actually
ramped up their USDT issuance since the start of 2018.
My bit of conjecture. This is exactly where traders that know how to trade are building their positions.
Additionally, I remember reading a report of Morgan Stanley (not 100 % sure, it could have been
JP Morgan as well?) were they suggested that only 6 billion $ of real fiat money have actually
found their way into the cryptocurrency markets and the rest of the 495 billion $ crypto marketcap
is basically paper gains (we all know how ridiculous market caps are in the cryptocurrency scene).
I find it extremely unlikely that more than 30 % of this amount should have found their way into
the cryptocurrency scene using Tether.
I'd like to read those reports to see exactly what they mean by that before commenting. It doesn't really strike me as something that is measurable.
Given the combined size of the exchanges using Tether, $2Bn seems like a small number to me. As you say marcap is irrelevant, it's not a stock, it's currencies. Compare $500Bn to money supply numbers and get some real perspective as to how small this still is. It's less than half a percent of the world's M2 money supply.