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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
It's a compounded fractional reserve system: you're buying a fractional reserve token with a fractional reserve currency. Buy bitcoin instead.
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Luke Dashjr Mar 14
Replying to @Excellion
Is Tether FDIC insured?
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Samson Mow Mar 14
Replying to @LukeDashjr
Does it have transfer limits?
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girevik Mar 14
Replying to @Excellion
The difference is that money in the bank account is insured, in the case of a bank run there are explicit and implicit guarantees to print enough money to cover your withdrawal, even if it’s tied up in a loan.
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Samson Mow Mar 14
“Print enough.”
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CryptoArbitrage Mar 14
Replying to @Excellion
Last time I checked banks had to be licensed and audited. Even if they are private & based in some tax haven. Tether is not a bank is not regulated. It is not even audited. It is the opposite of a transparent blockchain.
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Zoz Mar 15
Replying to @Excellion
Have you ever seen the audit accounts from the Federal Reserve. Have they ever opened their books for scrutiny? Hmmmm. Has anybody audited the US military accounts? If so how come there is a big black hole with $21 trillion missing? Yet no money for health and education.
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Kong (--oppose-dao-fork) Mar 14
Replying to @Excellion
Because bitcoin has raised the standard for what is acceptable. Also why I'm so pissed about the DAO bailout. When the standard is raised so high by bitcoin, why bother with those not up to the standard.
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Bitcoin noob Mar 14
Replying to @Excellion
Yeah... That comparison makes no sense at all, but ok.
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Crypto Meme Central 🔞 Mar 15
Replying to @Excellion
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Andrey Stulenkov Mar 14
Replying to @Excellion
Any money (except physical gold or btc) are protected only by reputation of its issuer and by his economic incentives to keep its value stable. It doesn't matter if Tether is 100% backed, no one can verify it anyway. Only reputation matters, everything else is marketing trick.
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Johnny Crypto Mar 14
Replying to @Excellion
Umm FDIC insurance???
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Justin Ehrenhofer Mar 15
Replying to @Excellion
Comments like these are false equivalence and don't really do the space any good. Savings accounts are backed the the government's "we'll figure it out if something happens" policy. Tether reserves don't have government oversight and support.
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TraderKloud Mar 14
Replying to @Excellion
Corporate bond it’s not 2007
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