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> Because minting money is a pretty normal thing in finance, especially if you want to avoid deflation. Tether is “minting” USDT, a token pegged to 1 USD - out
by yunohn 5y ago
> Because minting money is a pretty normal thing in finance, especially if you want to avoid deflation.
Tether is “minting” USDT, a token pegged to 1 USD - out of thin air. That’s not the same thing as printing currency.
- dathinab 5y agoMinting USDT currency to prevent deflation and keeping the currencies value around the value of 1 USD(1) is pretty much the same as printing USD to prevent deflation and keeping USD at the same value as some other currency/security, e.g. the Euro or Gold. The only difference is that most currencies place themself in relation to the USD, but anyway conceptually pretty much the same. Because in the end weather it's USDT, USD or even Gold their value is purely a construct of people (roughly) agreeing that it has that given value (in general in ratio to some other thing which has "value by agreement"). Gold might have some intrinsic value but it's fundamentally so much smaller then the gold price that it doesn't matter. (1): Assuming they did it for that reason, my argument was intentionally detached from Tether.
- yunohn 5y agoThat’s the thing though, USDT isn’t a currency - it’s a stable coin pegged to the USD. They can’t “print” more without getting more USD to back it up.