11–20 of 131 posts
You could just remove the T. In all seriousness the way the US gov has been playing with the debt ceiling and the enormous amount of money being printed the USD also has some serious issues.
You could just remove the T. In all seriousness the way the US gov has been playing with the debt ceiling and the enormous amount of money being printed the USD also has some serious issues.
But the US Govt gets to print dollars. That’s how that works, for better or worse. Tether does not get to print dollars (which is what they are doing by claiming they are “fully backed”).
For what it’s worth, this is from July. It predates the recent CFTC news.
You could just remove the T. In all seriousness the way the US gov has been playing with the debt ceiling and the enormous amount of money being printed the USD also has some serious issues.
There’s a difference between backed by the entire United States and being backed by a company with $66 million in their coffers.
You could just remove the T. In all seriousness the way the US gov has been playing with the debt ceiling and the enormous amount of money being printed the USD also has some serious issues.
This stuff is so disingenuous from maxis. I get that you want someone to pump your bags. But the US Govt gets to print dollars. That’s how that works, for better or worse. Tether does not get to print dollars (which is what they are doing by claiming they are “fully backed”).
First 1USDT should equal the value of 1USD, so any drop in value of the USD would also be a drop in USDT purchasing power.
Second, 1USDT backed by less than 1USD in value is obviously worth less than 1USD no matter what happens to the USD.
Third, the charter of the fed, created by congress, is to maintain a low fixed rate of inflation and maximal employment (along the Philips curve). They adjust the supply to meet this objective. Tethers goal is to pump the bags of early crypto entrants to simulate - and stimulate - liquidity to the benefit of the few.
You could just remove the T. In all seriousness the way the US gov has been playing with the debt ceiling and the enormous amount of money being printed the USD also has some serious issues.
There’s a difference between backed by the entire United States and being backed by a company with $66 million in their coffers.
Indeed. The us currently has in its coffers a $29T hole [1]
Earlier quoted context omitted.
There’s a difference between backed by the entire United States and being backed by a company with $66 million in their coffers.
>There’s a difference between backed by the entire United States Indeed. The us currently has in its coffers a $29T hole [1] [1] https://www.usdebtclock.org/
You’re looking only at the liabilities without checking what assets those liabilities are backed by, and what kind of new revenue those liabilities created. Debt isn’t burned money, it’s invested money at work in the economy. Out creating new revenue to service said debt.
Also, the value of a dollar isn’t driven by the federal balance sheet but rather demand for those dollars. When dollars enter the world, via fractional reserve borrowing, the new dollars are issued against new debt. The obligation to repay the dollar to the lender is what creates demand for dollars and gives them value.
I dont mean the power behind it and stuff.
But crypto basically left the gold standard itself a long time ago!
Earlier quoted context omitted.
There’s a difference between backed by the entire United States and being backed by a company with $66 million in their coffers.
>There’s a difference between backed by the entire United States Indeed. The us currently has in its coffers a $29T hole [1] [1] https://www.usdebtclock.org/
I find it so amazing for a group of people who despise the USD how much energy they will spend defending a company whose entire business model is USD.
In defense of Tether, maxis always try to deflect with this stuff, as if a couple of people minting ERC20 tokens is comparable in any way to the US Govt.
Earlier quoted context omitted.
>There’s a difference between backed by the entire United States Indeed. The us currently has in its coffers a $29T hole [1] [1] https://www.usdebtclock.org/
That’s not really how the financial system works. Debt is an investment in the economy, like you taking out a loan to buy a pizza shop. If your pizza shop generates more revenue than cost to service your debt, then the fact you have the debt doesn’t really matter does it? After all your own a pizza shop too, right. On the US side, the system fails once the economy fails - and then we have much bigger problems. You’re…
And right now, the picture isn't exactly rosy, certainly not something I'd invest in.
I'm no fan of Tether (as a matter of fact, I'm pretty certain it'll blow up in fairly short order. I am actually looking for a well constructed way to short it)
I was simply point out how ridiculous the comparison is.