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Timing difference, i.e. majority of assets are not held in cash (it is put to work), so if many people try to withdraw lots of money at the same time, it can tr
by joubert 6y ago
Timing difference, i.e. majority of assets are not held in cash (it is put to work), so if many people try to withdraw lots of money at the same time, it can trigger a downward spiral (“bank run”).
I’d you’re curious to understand more: https://en.wikipedia.org/wiki/Bank_run https://en.wikipedia.org/wiki/Bank_run
- andrepd 6y agoI don't understand, what does that have to do with anything? The issue being discussed is Tether, and how it's totally a pyramid scam since it doesn't hold 100% in reserve.