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>The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve. Banks are insured, and in general they
by pfisch 7y ago
>The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve.
Banks are insured, and in general they haven't failed for the last like 100+ years.
I do think what you are saying about usdt is mostly true though, however if(when) usdt does fail the entire market will take a dive off a cliff. So even if your assets are in other cryptos it still represents a systemic risk to the entire system.
- SkyMarshal 7y ago>Banks are insured, and in general they haven't failed for the last like 100+ years. Not sure what you're trying to say here, given Bear Stearns and Lehman just failed ~11yrs ago, and the entire banking system would have imploded if not for trillions in Fed lending support and govt stimulus.
- pfisch 7y agoThose were not consumer banks. I don't think anyone actually lost their account balances.
- arcticbull 7y agoThat's the SIPC for ya (https://www.sipc.org https://www.sipc.org)
- arcticbull 7y agoNot only were those investment banks, they were insured by the SIPC which actually protects the investments they've got on deposit. In 2008 WaMu and about a local bank a week went under and yet thanks to the FDIC no retail banking customer lost a single penny. That's why it's there. I swear if ECON101 was mandatory crypto wouldn't exist.
- deadbunny 7y ago> Banks are insured, and in general they haven't failed for the last like 100+ years. Thanks to massive bailouts you mean?
- pfisch 7y agoThe mechanism really doesn't matter as long as they are secured.