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The tether thing is less of a joke than you think. There is nothing preventing them to do exactly that. If you corner a BTC fanatic, they will often admit so th
by dasudasu 6y ago
The tether thing is less of a joke than you think. There is nothing preventing them to do exactly that. If you corner a BTC fanatic, they will often admit so themselves, but will claim it is no different than a central bank printing money or a regular bank doing fractional reserve banking.
There is plenty of circumstantial evidence that the tether supply is strongly correlated to BTC (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066), and at this point you have to take it as a point of faith that all the tether in circulation truly comes from fiat deposits. On the regulatory side, crypto currencies are very much like going back to the days of Wild West finance, random hold-ups included.
- javert 6y agoIronically, bitcoin itself is the solution for the "Wild West" problem of a company like Tether just printing money. By the way, Tether supply should be correlated to BTC, whether or not they are doing a fractional reserve.
- dasudasu 6y agoMany people into Bitcoin seems to be only concerned about the USD exchange rate. Even if people agrees that manipulation takes place, when it comes to Tether printing, it ends up inflating BTC, so clearly in their interest to go along. The speculative aspect becomes all-encompassing.
- javert 6y agoA lot of bitcoiners are long-term holders who either don't care what happens with Tether, or want the price to crash so they can load up on more bitcoin.
- howlgarnish 6y agoI haven't been following the Tether saga lately: is there any actual evidence that Tether is backed up with fiat?
- lawn 6y agoTether themselves have admitted that it's not fully backed with fiat. And as far as I know there's no actual good evidence on how much fiat they're backed by.
- inquirerofsorts 6y ago> as far as I know there's no actual good evidence on how much fiat they're backed by Would you say there's a minimum amount? Thought it was quite clear in the courts that it was at least 90% fiat backing with anything else being hard too account for which I'm guessing is doublespeak for "it's ours and you can't touch it". Virtually all of the people who actually hold tether are exchanges, mostly in the US. Everyday people are rarely exposing themselves to risk here. Just for comparison, the reserve ratio required by US banks is now effectively 0%. https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm