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Pardon my ignorance here, but are they (Tether) not doing what the established banks are doing with Gold, as in paper money being backed with something of value
by alex_hitchins 9y ago
Pardon my ignorance here, but are they (Tether) not doing what the established banks are doing with Gold, as in paper money being backed with something of value, normally precious metals? Not saying it's right, just trying to work out if it's a similar sort of situation.
- api 9y agoPaper money was once backed by gold, but today it's backed by "nothing." In reality that nothing is some combination of the GDP and the military might of the nation states that issue it.
- bufferoverflow 9y agoPaper money is not backed by anything in any of the countries at the moment. You're forced to pay taxes in the native currency, and in some countries you're forced to pay for products/services in the native currency.
- Nursie 9y agoTether are not showing that they have any backing, is the problem, and they're using the currency they create to buy crypto-assets on their own exchange. It looks like they're doing it to try to hold up the price of Bitcoin.