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Do most people even believe that Tether is backed 1:1? Or are they just playing along because it's in their interest?
by bootlooped 6y ago
Do most people even believe that Tether is backed 1:1? Or are they just playing along because it's in their interest?
- londons_explore 6y agoAll we can be sure of is that the money put into tether is greater or equal to the money taken out. If people didn't believe it, they would sell (either for BTC or real dollars), and if enough people did that then tether would collapse. My suspicion is there are enough dormant tether holders that the above will never occur, even if there have been some substantial fraud losses.
- alisonkisk 6y agoThere's a lot of room for delayed fraud, same as when banks fail. Imagine I secretly remove the contents of everyone's safe deposit boxes. I get rich selling what I stole, but no one is any poorer until much later when they try to cash out their treasures and realize they are gone. USDTether is an empty safe deposit box.
- londons_explore 6y agoMy argument is if some people aren't regularly looking in their safe deposit box, the fraud might never cause a collapse.
- hannasanarion 6y agoThe New York Attorney General is going to look into the box on January 15.