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Can someone imagine a world where the fine for tether is sufficiently large , that they dont have a capacity to pay it, and thus, blowing up the entire thing ?
by IG_Semmelweiss 5y ago
Can someone imagine a world where the fine for tether is sufficiently large , that they dont have a capacity to pay it, and thus, blowing up the entire thing ?
- mrh0057 5y agoThe whole long blows up when enough people try to withdraw tether for dollars and they don’t have enough to cover. As long as that doesn’t happen it will be alive. Works just like a Ponzi Scheme or a run on a bank.
- unreal37 5y agoNo, because Tether can issue it's own coins to pay for it. Like trying to fine the US Government.
- dragontamer 5y ago> No, because Tether can issue it's own coins to pay for it. To a point, and that point is far larger than any of us imagined. But the Titan / Titanium collapse shows that you can't print money forever (or in the case of Titan / Titanium: print money automatically). It only takes a small downturn to make everything go to crap.
- roywiggins 5y agoThey still have to pay the fine in dollars, though. If you fine Tether a trillion dollars, they'll need to find people willing to pay them one trillion dollars in exchange for newly-minted (and obviously unbacked) Tether. If you fined Tether one quadrillion dollars, they could mint a quadrillion Tether but they definitely won't have a quadrillion dollars to hand over. Also, if you can't pay a fine without dipping into your depositors' money you are insolvent by any reasonable definition.
- robot_no_419 5y agoThat's like imagining a world where governments hold billionaires and CEOs accountable for their greed and crime and their tax evasion. In other words, a pipe dream.