3 ms·

I have a simpler thought experiment. Every time you own a tether, you buy it for a dollar. That dollar goes into a large room. Now each tether is backed by a li

I have a simpler thought experiment. Every time you own a tether, you buy it for a dollar. That dollar goes into a large room. Now each tether is backed by a literal dollar. What’s the problem? I can’t wrap my head around what’s so hard about this.

lmm 4y ago
What happens when a bunch of literal or metaphorical rats eat the dollars?
lesam 4y ago
Who pays for security for the room with the dollars?
- bergenty 4y ago
  Okay buy US government bonds with them. What else am I not seeing?
  - kortilla 4y ago
    Now you have a drawdown and bond prices have declined because interest rates increased. Whoopsie, you’re fucked.
    - bergenty 4y ago
      I was referring to fixed rate bonds. Alternatively charge 1% on each transaction for security.