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Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

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Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#211

Post by astrange »

zhoujianfu wrote: post #103
rzz3 wrote: post #76

Earlier quoted context omitted.

Yes, providing money without any attached good or service or unit of value definitely won’t cause inflation/s WHAT?

The thing is, inflation caused by printing money AND distributing it directly and every to all people is fine… it’s just the most efficient / progressive wealth tax! Even if (printing and then) giving everybody $40K/yr caused, say, 40% inflation, anybody making under $100K/year would be better off. You actually wouldn’t need any taxes if the government just printed all money it needed, hopefully most of which is in t…

The taxes are what gives the official currency its value. If you didn't have to pay sales tax in USD for every transaction, it would be equally or more convenient to pay in other currencies, but this keeps it all in USD.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#212

Post by astrange »

gruez wrote: post #151
zhoujianfu wrote: post #103

Earlier quoted context omitted.

The thing is, inflation caused by printing money AND distributing it directly and every to all people is fine… it’s just the most efficient / progressive wealth tax! Even if (printing and then) giving everybody $40K/yr caused, say, 40% inflation, anybody making under $100K/year would be better off. You actually wouldn’t need any taxes if the government just printed all money it needed, hopefully most of which is in t…

>it’s just the most efficient / progressive wealth tax! no, it's not a wealth tax. it's a cash tax. if you printed money and caused 100% inflation, that'll just cause every scarce asset (eg. houses, stocks, gold) to double in price. Since the rich hold most of their wealth in assets, not cash, I doubt it will be fair or progressive.

Stocks aren't scarce assets. They're infinitely dividable, so the price per share going up doesn't cause them to be harder to buy.

This used to be true before we had computers and free fractional share purchases of course.

Houses aren't really either, it's the land that is. Thanks Henry George.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#213

Post by zhoujianfu »

gruez wrote: post #123
zhoujianfu wrote: post #116

I’m not saying tether is fully backed (I think it’s been admitted they’re not), but do people not understand how it even ostensibly works? When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. With the huge crash, a lot of people were selling their c…

>When people sell other crypto for tether/USDC, they are essentially “buying” tether/USDC. Which tether and circle “print” out of thin air… but ostensibly back by selling the other crypto they just received for real dollars. You're missing the previous links in the chain. When you sell your crypto at an exchange, your counterparty isn't the exchange, it's another person who wants to buy crypto. Therefore you making t…

If I were tether themselves, I know I’d be personally market making every usdt trading pair on every major exchange myself. And when people bought my tethers for crypto I’d turn around and sell the crypto for usd and issue more usdt.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#214

Post by zhoujianfu »

astrange wrote: post #211
zhoujianfu wrote: post #103

Earlier quoted context omitted.

The thing is, inflation caused by printing money AND distributing it directly and every to all people is fine… it’s just the most efficient / progressive wealth tax! Even if (printing and then) giving everybody $40K/yr caused, say, 40% inflation, anybody making under $100K/year would be better off. You actually wouldn’t need any taxes if the government just printed all money it needed, hopefully most of which is in t…

The taxes are what gives the official currency its value. If you didn't have to pay sales tax in USD for every transaction, it would be equally or more convenient to pay in other currencies, but this keeps it all in USD.

I think it might be hard to bootstrap this system without tax maybe, but the usd is pretty well established now and I bet they could make the switch and people would keep using it!

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#215

Post by zhoujianfu »

gruez wrote: post #151
zhoujianfu wrote: post #103

Earlier quoted context omitted.

The thing is, inflation caused by printing money AND distributing it directly and every to all people is fine… it’s just the most efficient / progressive wealth tax! Even if (printing and then) giving everybody $40K/yr caused, say, 40% inflation, anybody making under $100K/year would be better off. You actually wouldn’t need any taxes if the government just printed all money it needed, hopefully most of which is in t…

>it’s just the most efficient / progressive wealth tax! no, it's not a wealth tax. it's a cash tax. if you printed money and caused 100% inflation, that'll just cause every scarce asset (eg. houses, stocks, gold) to double in price. Since the rich hold most of their wealth in assets, not cash, I doubt it will be fair or progressive.

Except IF the money is being printed to be distributed to everybody, there’s going to be more money in the hands of people who can’t afford picassos and Malibu real estate, and less going to those who can, so I would expect in that scenario the increase in price of those assets would likely have a hard time keeping up with inflation.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#216

Post by drexlspivey »

scrubs wrote: post #210
drexlspivey wrote: post #201

Earlier quoted context omitted.

The price is not being determined on the open market, Tether's whole job is to maintain the peg at 1-to-1. Contrary to the FUD that is being recycled in here on all Tether topics, Tether doesn't print new money just because they feel like it, they do it in response to the demand for USDT in order to maintain the price at $1. Yesterday cryptos crashed hard, people started moving out of their crypto positions and into…

Huh? They peg on Saturday? (OP's ref'd txn has a Sat date on it. They wait to peg only for nice round numbers like $1B exactly? No cents? No decimal? They don't peg end-of-day, or at market-close, month or quarter end? Is there an official financial notification of peg events like a crypto-currency corporate event calendar? Nobody should be surprised because pegging is telescoped ahead right? Is there an offset in an…

I am not quite following what you are saying. When a currency is pegged to another, the central bank is actively buying and selling it's currency on the secondary market in order to maintain the peg ratio. It certainly doesn't happen at the end of every month or quarter.

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#217

Post by post_from_work »

natch wrote: post #120
BrissyCoder wrote: post #98

Nah. It's backed by cash and cash equivalents mate.

So in other words, long term, it's backed by toilet paper.

The toilet paper is backed by nuclear weapons and the world's most offensively-capable Navy and Air Force (arguably no longer the world's largest Navy so I clarified the metrics).

Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air

#220

Post by danielvf »

gruez wrote: post #166
notjesse wrote: post #155

Earlier quoted context omitted.

This makes me think; what if you shorted USDT? There seems to be almost no scenario where USDT becomes more valuable than the USD, and the worst case is it continues to be worth the same. But there is a fair probability it becomes worthless, meaning that you gain from it. While you need to pay premiums in the interim, for something with an indefinite timeframe, that risk seems fairly minor for the potential reward.

>But there is a fair probability it becomes worthless, meaning that you gain from it. >While you need to pay premiums in the interim, for something with an indefinite timeframe, that risk seems fairly minor for the potential reward. 1. the chance of collapse might be lower than you think. the "tether is going to collapse any day now" sentiment has been around for years now, but collapse has proved elusive. 2. borrowi…

I work with a blockchain project that lends a lot of USDT, USDC, and DAI. The cost at this moment to borrow USDT on the blockchain is 4%-5% for any amount, or 3.75% in bulk while playing defi games. The two biggest to lend it are Compound [0] and AAVE[1].

[0] https://compound.finance/markets/USDT

[1] https://app.aave.com/#/reserve-overview/0xdac17f958d2ee523a2...

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