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Samson Mow
I find it adorable that people are so concerned with the fine print on exactly how Tether is backed, while the money they think is in their own bank’s saving account is probably tied up in a mortgage loan. 🤷‍♂️
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Colin Harper Mar 14
Replying to @Excellion
But isn't this precisely why we should be concerned? Tether is operating exactly like a bank with supposedly ~$2 bln in deposits. Crypto is meant to circumvent the banking system, so if people have money in Tether, they should know that its reserve could be fractional.
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Samson Mow Mar 14
Replying to @AsILayHodling
It’s just legalese to cover bases: from time to time. If they are moving cash around from bank to bank, it’s possible to use various instruments to do so and re-balance. The point most people miss is that Tether is a tool for trading. You shouldn’t keep your life savings in USDT.
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Samson Mow Mar 14
Replying to @AsILayHodling
With the liquidity available in USD/USDT markets it’s not even an issue. But let’s say you as a trader are worried, well, just cash out and put your USD into your bank - where it definitely is going to be leveraged. If Tether is a bank, it’s the best run bank in the world.
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Samson Mow Mar 14
Replying to @AsILayHodling
But if the concern is still what Tether is backed by, better ask yourself what USD is backed with. It’s definitely not gold. 😉
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Colin Harper Mar 14
Replying to @Excellion
I agree completely. I just think that coverage like this exposes exactly why you shouldn't keep your savings in Tether--for the explanation you just put forth and because the update basically clarifies that Tether makes loans with user deposits.
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Luke Dashjr Mar 14
Replying to @Excellion
Is Tether FDIC insured?
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Hawk Stevens 🐙 Mar 14
Replying to @girevik_ @Excellion
Turtles all the way down.
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Samson Mow Mar 14
Replying to @LukeDashjr
Does it have transfer limits?
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Samson Mow Mar 14
Replying to @HawkStevens @girevik_
“Print enough.”
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Samson Mow Mar 14
If you really think it is, go short it.
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Samson Mow Mar 14
Replying to @AsILayHodling
Sure but no one keeps savings in USDT. It’s for trading.
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