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>Each tether is created when someone gives up a dollar. > The only concern is that maybe they don’t have enough reserves to cover all the tether they created.
by trhway 6y ago
>Each tether is created when someone gives up a dollar.
> The only concern is that maybe they don’t have enough reserves to cover all the tether they created.
So, it sounds like selling 1 USDT for $1 the Tether people put, lets be optimists here, $0.1 into the bank as reserve and pocket $0.9. Or do i miss something here?
- spiralx 6y agoMore that nobody buys any USDT with $ at all, and then Tether announces that there are two billion new USDT, which are then used to buy BTC. The trick is that lots of exchanges don't have any way to convert from crypto to real currency at all so use USDT as a stand-in, USDT's supposed backing 1:1 with $ means it's a stable place during crypto volatility, and it's next to impossible to actually get $ from directly exchanging USDT.