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People get upset when you print USD, so Bitfinex instead creates USDT out of thin air and then uses it to buy BTC on its exchange. This would be OK if the Tethe
by jonknee 9y ago
People get upset when you print USD, so Bitfinex instead creates USDT out of thin air and then uses it to buy BTC on its exchange. This would be OK if the Tether was actually backed by USD reserves dollar for dollar, but there is zero evidence that this is the case.
- bufferoverflow 9y agoI understand that, but my question is why would anyone buy USDTs in such quantities? The total is now close to a billion dollars, as far as I understand.
- jonknee 9y agoExchanges make it cheaper/easier because they're all light on USD and banking/tax rules make all sorts of sketchy characters want to avoid USD. There are also probably a lot of people who don't know any better and think that it's as safe as USD.
- bduerst 9y agoHow have they not been sued for this yet? They're advertising monopoly money as being backed by real money.
- empath75 9y agoThey actually say on the website that they're not redeemable.