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How? They have to maintain that million dollars so I can withdraw it when I need it. Nothing has yet shown that is a problem or that’s not being done. Go depo

How? They have to maintain that million dollars so I can withdraw it when I need it. Nothing has yet shown that is a problem or that’s not being done. Go deposit 1 million in a bank, and then ask for it in cash the next day. You won’t get it.

themagician 5y ago
They do not maintain that million dollars as dollars. They instead buy all sorts of stuff. Only a small portion is maintained as dollars. If there is a run on Tether tomorrow it will collapse. You won’t get your money. Assets will need to be liquidated, and some of them might be junk.
jazzyjackson 5y ago
The fact that tether does not hold 1:1 cash reserves was widely reported Here’s a discussion from may, “Tether says its reserves are backed by cash to the tune of 2.9%” https://news.ycombinator.com/item?id=27151370 https://news.ycombinator.com/item?id=27151370
IncRnd 5y ago
> Go deposit 1 million in a bank, and then ask for it in cash the next day. You won’t get it. But, you will get it. Try that with Tether, and you might just get laughed at. They would have already put your million dollars to other uses outside of being a deposit for you.
- crazydoggers 5y ago
  You can read about what happens when you try to withdraw that much cash from a bank. Not only do they not hold that much cash, there’s lots of hoops to jump through: https://www.linkedin.com/pulse/when-i-tried-withdraw-20000-my-own-money-from-bank-samuel-barton https://www.linkedin.com/pulse/when-i-tried-withdraw-20000-m... https://www.cleveland.com/business/2012/04/man_who_wants_to_withdraw_6000.html https://www.cleveland.com/business/2012/04/man_who_wants_to_... https://grantcardonetv.com/ever-withdraw-1000000-in-cash-from-your-bank-i-did-heres-what-happened/ https://grantcardonetv.com/ever-withdraw-1000000-in-cash-fro... https://finance.zacks.com/federal-banking-rules-withdrawing-large-sums-cash-1696.html https://finance.zacks.com/federal-banking-rules-withdrawing-...

themagician 5y ago

They do not maintain that million dollars as dollars. They instead buy all sorts of stuff. Only a small portion is maintained as dollars. If there is a run on Tether tomorrow it will collapse. You won’t get your money. Assets will need to be liquidated, and some of them might be junk.

jazzyjackson 5y ago

The fact that tether does not hold 1:1 cash reserves was widely reported Here’s a discussion from may, “Tether says its reserves are backed by cash to the tune of 2.9%” https://news.ycombinator.com/item?id=27151370 https://news.ycombinator.com/item?id=27151370

IncRnd 5y ago

> Go deposit 1 million in a bank, and then ask for it in cash the next day. You won’t get it. But, you will get it. Try that with Tether, and you might just get laughed at. They would have already put your million dollars to other uses outside of being a deposit for you.

crazydoggers 5y ago
You can read about what happens when you try to withdraw that much cash from a bank. Not only do they not hold that much cash, there’s lots of hoops to jump through: https://www.linkedin.com/pulse/when-i-tried-withdraw-20000-my-own-money-from-bank-samuel-barton https://www.linkedin.com/pulse/when-i-tried-withdraw-20000-m... https://www.cleveland.com/business/2012/04/man_who_wants_to_withdraw_6000.html https://www.cleveland.com/business/2012/04/man_who_wants_to_... https://grantcardonetv.com/ever-withdraw-1000000-in-cash-from-your-bank-i-did-heres-what-happened/ https://grantcardonetv.com/ever-withdraw-1000000-in-cash-fro... https://finance.zacks.com/federal-banking-rules-withdrawing-large-sums-cash-1696.html https://finance.zacks.com/federal-banking-rules-withdrawing-...