Scenario:
Eth is $400 on Coinbase, Bitcoin is $12000 on Coinbase
Print 1,000,000 Tether
Buy $1,000,000 of Eth on an exchange that supports Tether
Sell $1,000,000 of Eth on Coinbase
Buy $900,000 (arbitrary post-sale amount from selling Eth) of Bitcoin on Coinbase
Another scenario:
Bitcoin is $12000 on Coinbase
Bitcoin is $12000 on another exchange that supports Tether
Print 1,000,000 Tether
Buy $1,000,000 of Bitcoin on the exchange that supports Tether
Bitcoin is now $12050 on another exchange
Coinbase price of BTC rises as arbitrage bots and manual traders purchase cheaper Bitcoin on Coinbase and sell it for profit on the other exchange until prices equalize
Eth is $400 on Coinbase, Bitcoin is $12000 on Coinbase
Print 1,000,000 Tether
Buy $1,000,000 of Eth on an exchange that supports Tether
Sell $1,000,000 of Eth on Coinbase
Buy $900,000 (arbitrary post-sale amount from selling Eth) of Bitcoin on Coinbase
Another scenario:
Bitcoin is $12000 on Coinbase
Bitcoin is $12000 on another exchange that supports Tether
Print 1,000,000 Tether
Buy $1,000,000 of Bitcoin on the exchange that supports Tether
Bitcoin is now $12050 on another exchange
Coinbase price of BTC rises as arbitrage bots and manual traders purchase cheaper Bitcoin on Coinbase and sell it for profit on the other exchange until prices equalize