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So are you not refuting that the core mechanic looks the same with Tether? The difference is just that the fractional reserve banking system is protected by the
by mahogany 5y ago
So are you not refuting that the core mechanic looks the same with Tether? The difference is just that the fractional reserve banking system is protected by the government, with guns if necessary?
- munk-a 5y agoI wasn't actually addressing whether tether does or does not under reserve assets. I'm not particularly familiar with tether in general and the article isn't the easiest to follow when it comes to where specifically the money is and how secure those investments are. It'd be a poor practice to have all their backing cash invested into GME, but it'd also be a poor practice to have their cash in actual bills somewhere. Ideally Tether can maintain an oversupply of asset value in various sources that are stable enough to justify less than the oversupply they have.