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The issue is that if it isn’t backed they can print more at any time. But they claim it is backed to avoid inflation devaluation of the currency. Banks are not
by bhouston 6y ago
The issue is that if it isn’t backed they can print more at any time. But they claim it is backed to avoid inflation devaluation of the currency. Banks are not lower to print currency but tether can at any time. The potential for fraud sufrounding tether is huge and no one is checking over them. Do you trust them? They are already known for lying. This is why banking regulations exist.
- lettergram 6y ago> The issue is that if it isn’t backed they can print more at any time. That’s how all banking works. China, for instance, never even publish how much money they click into existence. Not saying it’s correct, just explaining how the system really works. They really do “create” money. Even synthetic shares are created on the stock market (largely when creating ETF blocks), see “naked shorts”. It happens all the time. Here’s an explanation on how banking & interest work in a digestible way: http://anuparty.org/on-interest-slavery/ http://anuparty.org/on-interest-slavery/
- dgellow 6y agoTether isn't a bank. It's a stable coin supposed to be backed by real dollars. But that's of course not the case in practice.