Nah. It's backed by cash and cash equivalents mate.
Yea, they back the value through the crypto they buy using part of what they minted. It’s a brilliant strategy that can never fail because crypto fundamentally can only go up…
Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
231–240 of 271 posts
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#232Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's…
This also means that nobody needs to be poor. Anyone can just get some money since its tied to nothing.
“How can you have money,” demanded Ford, “if none of you actually produces anything? It doesn't grow on trees you know.”
“If you would allow me to continue..."
Ford nodded dejectedly.
“Thank you. Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”
-Douglas Adams, The Restaurant at the End of the Universe
https://www.goodreads.com/quotes/685739-if-the-management-co...
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#233I am very novice on money, but isn't it how USD also printed or minted nowadays?
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#234Earlier quoted context omitted.
Not agreeing with the parent comment, but I fail to see how printing money and distributing it involves violence.
The USA actually does have laws against creating anything that might be interpreted as competing with the official currency. This is the most likely avenue for violence to come in, as people try to resist devalued money by using substitutes.
There are generally no laws in the USA against creating and using alternative currencies. I can buy and sell using Euros or Monopoly money or whatever if I can find a willing counterparty. However, if those transactions are taxable then I have to report them at the US Dollar fair market value equivalent and pay any taxes due in US Dollars. And if someone owes me a debt I am required to accept US Dollars for settlement.
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#235I am very novice on money, but isn't it how USD also printed or minted nowadays?
Yes, but USDT claims it is backed by USD. The belief in this claim is what holds the pegged value.
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#2361B tethers should be created when someone deposits $1B into Tether Corp's bank account. "Created out of thin air" means tethers have been issued on blockchain, but no one deposited any US dollars into said bank account. What evidence do you have for the latter?
If you are confident that is exactly what happened, why don't you go and short USDT/USD pair? Why no insider executed that profitable short trade? How come after so many years of tireless accusations on every message board available, that 99% of people seem to agree with, said pair still trades at exact 1.000 ratio? Why authorities have not stopped the obvious fraud going on for so long?
Something doesn't add up.
Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#237Earlier quoted context omitted.
> I think a lot of good would come from that and not much bad. Here something that'd happen - the homeless in encampments would get hoovered up by slumlords who put them in squalor and consume their $1k checks. Poor people would have more children because each child = $1k/mo, even if they have to wait 18 years. Abduction would be easy - the ransom pays itself over time. Fraud would be rampant. The ultra poor undercla…
“ Abduction would be easy - the ransom pays itself over time. Fraud would be rampant.” Do we have any evidence that abduction and fraud is rampant in countries in Western Europe, known for the very generous social programs? Are they exploding with poor people having kids??? Is it dangerous to live in, idk, Sweden because someone is gonna kidnap you for your social bux? I’m genuinely asking because the notion of rampa…
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Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#2381B tethers should be created when someone deposits $1B into Tether Corp's bank account. "Created out of thin air" means tethers have been issued on blockchain, but no one deposited any US dollars into said bank account. What evidence do you have for the latter? If you are confident that is exactly what happened, why don't you go and short USDT/USD pair? Why no insider executed that profitable short trade? How come af…
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Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#239To put this into perspective 1. 1 billion is just 1.33% of the total USD Tether has issued. 2. USDC also issued 1bn in the last 24 hours.
Circle has passed multiple audits. Coinbase is a company that managed to at least convince the SEC they are doing things correctly. Also important, no one from Circle/Coinbase leadership is missing, incommunicado or in hiding.
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Re: Approx. 24 hours ago, Tether printed 1B $USDT out of thin air
#240Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's…
Right now I think a good analogy is it's like musical chairs. The game is fine as long as the music is playing. When the music stops, someone's gonna lose big. The problem is when the music stops and there's a run on crypto. People are trying to get out of $USDT and convert it into cash. Exchanges have to have buyers of $USDT so they can exchange $USDT back into cash for anyone that wants to. But they can't just crea…
Musical chairs is a sign it's likely an illegal pyramid scheme.