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> It’s not backed. Then again, neither is a typical bank account.
by tinus_hn 4y ago
> It’s not backed.
Then again, neither is a typical bank account.
- smt88 4y agoAbsolutely wrong. Typical bank accounts in the US are FDIC-insured.
- anonymoushn 4y agoUp to any amount of deposits?
- warkdarrior 4y agoEach account is insured up to $250k, and you can open as many accounts as you wish. Source: https://www.fdic.gov/resources/deposit-insurance/faq/index.html https://www.fdic.gov/resources/deposit-insurance/faq/index.h...
- Scoundreller 4y agoNononono!!!! > Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category If you want have more than $250k insured in regular accounts, spread it across multiple banks (or put some in a joint acct, but that has its own risks). Opening a chequing account and a savings account at the same bank doesn’t give you $500k of coverage if you were to put 250k in each.
- mariojv 4y agoThank you for this. I was under the assumption one could open any number of accounts at the same bank and get the same insurance guarantee. It is good to read the specific language.
- tinus_hn 4y agoWhich is not the same as backed 100% by real dollars. It’s just another level of guarantees, just like the guarantees given by Tether. Obviously it’s very reasonable to trust one more than the other, but neither are backed 100% by real money.
- gilrain 4y agoA promise from a well known con artist and a promise from a centuries-reliable government aren’t actually usefully similar.
- smt88 4y ago> just like the guarantees given by Tether The only similar is that they are guarantees. The FDIC can't run out of money because Congress would just re-fund it in the unlikely (and extreme) event that its current funding ran out. Bank accounts with FDIC insurance are literally backed by the people who create dollars.
- tinus_hn 4y agoDollars are created by the Federal Reserve, not Congress. Banks are backed by FDIC insurance which, although it has been able to pay each claim ever filed, did get cold feet in the 2015 crisis and obviously does not hold a dollar for each insured dollar. In fact some cursory research shows they hold about $6 for every $10000 and in a major collapse like the 2015 crisis, which could have been even worse, they could very well get in trouble.
- righttoolforjob 4y agoThe typical bank account is backed by a properly regulated financial institution, whereas USDT is backed by some shady foreign company.