Anything that is "too big to fail" is so far debt and on ESG standards that it's not a real business.
Shit like stablecoins are unironically more legit than any bank the Fed regulates.
Tether has more reserves than your bank
Josiah Gray
Other urls found in this thread:
youtube.com
seekingalpha.com
twitter.com
Nicholas Young
youtube.com
Thoughts on this video? I love CoffeeZilla and he makes Tether seem like a tower of cards if not an outright scam.
Julian Kelly
DELET
Logan Green
was a long time since I watched that video but if i remember correctly he didn't really say anything that tether "fudders" haven't said before. yes tether is partially backed, yes they have a lack of transparency but as OP said its way more backed than a normal bank and it makes no sense to offer a 100% backed stablecoin as a company
Andrew Baker
idk man I don't hold any stablecoins I'm just drunk and high and feel like talking shit on the Fed.
What I'm interested in is stable dollars on lighting network being developed.
The money they made from the bitcoin car at the indy 500 last year is being put towards developing a discreet log contract on lightning that'll issue "dollars".
It works by a channel consisting of a bitcoin long contact, a dollar contract, and an arbiter that's a price ticker that'll maintain the channel balance.
It'll be a futures contract on lightning and also issue stable coins.
This is pseudo dollars that'll be pretty legit, lol.
Adam Price
1. This does NOT allow a private bank to issue unbacked commercial bank money. If the bank did, it would quickly become insolvent. It allows a private bank to hold no cash in reserve to pay for withdrawals. Issued commercial bank money are liabilities that should be balanced with other assets, just not necessarily cash.
2. It DOES increase likelihood of a liquidity crisis, as liquid reserves can be lower.
3. Private banks have a lender of last resort (the central bank) who can lend central bank money (and even print it if necessary) with the bank's illiquid assets as collateral to help the private bank in a liquidity crisis. Lending obviously cannot help in an insolvency crisis.
For these reasons you are entirely wrong.
Elijah Martinez
>it makes no sense to offer a 100% backed stablecoin as a company
right, so stablecoin producers and insiders should just be able to print more coins whenever they want?
exactly how is this supposed to be an improvement to what the FED does? This defense of tether is 100% retarded because by admitting that "well the real world does this too" is basically admitting your chuck-e-chese redemption tokens solve nothing and hold tons of liability in the event of a crypto recession
Daniel Perry
>Any Forums genuinely does not understand the difference between backing and reserves
Chase Wright
How am I wrong?
You admit that this causes a liquidity crisis.
The dollar isn't backed by anything.
If anything it works against itself by giving more favorable loans to ESG standard companies.
Aaron Kelly
Because there is a difference between liquidity crisis and insolvency crisis. We have no reason to trust Tether's claim of backing and we know Tether has been insolvent in the past and lied about its reserves when used its cash reserves to cover Bitfinex's $850M loss.
Even if we take Tether at their word and assume they're solvent, in a liquidity crisis they don't have a central bank to turn to.
>The dollar isn't backed by anything
Right, the dollar must be accepted for goods and services sold in the United States and a handful of other countries where it is legal tender because the law of those countries says it must be. Other problems, such as hyperinflation can of course happen to government-backed currencies, but we're not talking about that (even if there was USD hyperinflation, that would affect USDT too due to the peg.) There is no government saying you must accept USDT in payment for goods and services, so its $1 value comes entirely from the fact that it can be redeemed for a dollar.
Suppose Tether became a currency in its own right which legally must be accepted as payment for goods and services like the dollar. Then you would have recreated a centralized currency, albeit one administered by a shady unregulated offshore company created by fraudsters instead of by a central bank with some democratic oversight.
Luke Ramirez
> right, so stablecoin producers and insiders should just be able to print more coins whenever they want?
Nobody with a brain is accusing tether of this. I send tether $1M and they mint $1M in usdt. What they are in fact accused of is not just putting my $1M in a vault, but reinvesting some of it in yield bearing assets. If they didn’t do this, there would be no profit in it for tether and they’d have no reason to provide the service. Congratulations, you now understand not only what the post you replied to said, but also how the crypto ecosystem works.
Jaxon Allen
> Right, the dollar must be accepted for goods and services
It does not. Legal tender means it’s a valid instrument for settling debt.
Hudson Adams
Both of them are inherently ridiculous.
USD and USDT are a short lived thing that'll burn out.
The only work behind both are a threat these days that'll be challenged.
Jacob Wilson
Pedantry means excessive concern with minor details and rules.
USD is more than 200 years old. If it ceased to exist tomorrow it would hardly be short lived. I imagine the Renmimbi will replace it as the global reserve currency in the next century, but I do agree that USDT will be fairly short lived.
Brody Lee
You're probably right regarding your first statement, but the difference is that the government has a massive propaganda machine working for it, specifically corporate media that can prop up the illusion indefinitely. With this, they can create more digits at will while using the machine to make you feel like the retard for questioning the whole scheme.
If people lose faith in Tether or any other stablecoin and it implodes, it will be all over the news and you'll be made to feel like an idiot for believing in it. Most people you know will take the bait, despite the fact that the dollar is just as much or more of an illusion.
Isaiah Adams
I always point this out yet it goes right over peoples head.
Luke Reed
>USD is more than 200 years old.
Most of USD's history it was 1/20 oz of gold.
Since 1971 it hasn't been backed by anything.
When WWII happened the U.S. had 700m oz of gold under it's control.
From WWII to 1971 the U.S. went from 700m oz of gold to 200m oz of gold.
They had French warships in NY harbor coming to collect on USD bonds "backed by gold"
The entire world got caught with their pants down.
Even Nixon's secretary of treasury said "the USD is our currency, but your problem"
Since 1971 the USD has been a financial tool to illicit control over 3rd world countries, and recently has been a tool to push ESG standards and niggers in basically all levels of american culture.
Easton Murphy
Does it have 100% reserves?
Nathan Rodriguez
1913* - since WW1. The world wars caused all this.
seekingalpha.com
Levi Walker
Thanks for proving crypto is all a scam idiot
Lincoln Morales
Everything is because of the banker kikes.
Covid is because the repo markets exploded in Sept. 2019.
The lockdown is because the banks were failing and removed reserve requirements.
The lockdowns slowed down money velocity.
The Russia meme in Ukraine is because the Fed is having emergency meetings on inflation, and they can't raise the interest rates.