3 ms·
The return on US treasuries is usually lower than inflation. You lose real money by keeping only US treasuries. It could maybe be done with TIPS, but that wou
by dmoy 4y ago
The return on US treasuries is usually lower than inflation. You lose real money by keeping only US treasuries. It could maybe be done with TIPS, but that would be a little tricky to accomplish.
For example a couple years ago, 1 year treasuries had a ~0% rate.
- 0x53 4y agoYes, but it doesn’t matter if the money you are losing to inflation is being lent to you for free. Although coinbase does pay a small percentage to usdc holders on their exchange I think it is one of the ways to convince people to switch away from tether.
- JackMcMack 4y agoInflation is irrelevant if your stable coin is pegged to the currency that is inflating.
- jiggawatts 4y agoJust to expand on the comments made by other places: The holders of Tether lose money (effectively) due to inflation. The owners of Tether the corporation (Binance) can collect the interest, which is cash money. Billions is billions. They only have to repay the face value of the deposited cash. Yes, the real purchasing power goes down over time, but that's not their problem!