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> but when I take cash out of my bank account I get a cash dollar 1:1 with what they debit my account; they don’t prorate it for the amount of reserve they have
by sekai 6y ago
> but when I take cash out of my bank account I get a cash dollar 1:1 with what they debit my account; they don’t prorate it for the amount of reserve they have.
Now try taking out 50 million or more, you'll face same difficulties.
This tether nonsense comes up every few months, still adamantly holding the 1:1.
Not mentioning that it's not the single dollar peg option in crypto space anymore, plenty of other options USDC, Dai.
- paulgb 6y ago> Now try taking out 50 million or more, you'll face same difficulties. Sure but that’s my point. The fact that my small volume transactions go through without friction is not proof that the system is not fractional reserve. In the case of a (properly run) bank the value still exists but isn’t liquid; in the case of USDT we don’t know without an audit.