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In what way is Tether not a fiat currency?
by shuntress 6y ago
In what way is Tether not a fiat currency?
- notahacker 6y agoIronically Tether, whose quantity appears to be determined by however much the small private entity that runs it decides to create, appears to be a much purer example of 'fiat' currency than most national currencies have been for most of the last half century (quantity determined in a decentralised manner by the balance of supply and demand for credit at a base interest rate a centralised body periodically updates to hit a [decentralised market-driven] fixed target rate of inflation)
- tim333 6y agoInvestopedia has: >Fiat money is a government-issued currency that isn't backed by a commodity such as gold. Tether fails the government-issued bit.
- shuntress 6y agoIn what meaningful way is Tether not a fiat currency?
- blackbrokkoli 6y agoIt is meaningful, because a large part of crypto culture seems to be based around hand-waving and selling you an underdog no-big-government empower-the-people story
- tim333 6y agoThe not government issued bit would become pretty meaningful if they get shut down or collapse. They are more like IOU notes for fiat currency - Tether owes you one US$.
- shuntress 6y agoHow is that not effectively the same thing? Is Tether less likely to shut down or collapse?