so in this version of your fake fever dream - tether doesn’t take in any money and just prints tokens with nothing backing them. And then takes those tokens and transfers it into “real money“. So are you saying that they then sell the unbacked tether to buy other stable coins? Or do they buy another asset? Do they then put these assets that they bought with another stable coin that they in turn bought with unbacked tether on their balance sheet? Do they act like these are the assets that back tether in the first place? this makes no sense my friend.
No in my version tether prints tokens and sell them for money. Tether has money or Bitcoin, bag holders have tether. When the music stops who wins?
You don't get them for free, you pay your hard earned cash for them, you have to hope they will retain their value, afterall they are not backed by anything. Tether claims they have reserves but who knows?
Why do you keep saying they aren't backed by anything? They are backed by the money you paid for them. OMG, Let's put this in terms a child can understand. I own a video arcade. You come to the arcade to play games and see that all the games require tokens to play. Each token represents 25 cents. You put a 10 dollar bill in the machine and get 40 tokens in return. At the top of the token machine, it says, "Come to the front desk to redeem any unused tokens for quarters." You start playing games but halfway through you get an emergency call that forces you to leave. So as you're walking out, you stop by the front desk and give the attendant the 20 tokens you never got around to using. He gives you a five dollar bill and tells you to come back again when you have more time. What is so hard to understand about this? See, you've conjured up some corrupt scheme where Tether sells tokens and then takes all the cash and spends it on hookers and lambos so your tokens can't possibly ever be redeemed again, which is ridiculous considering their track record of always being able to redeem Tether tokens when requested to do so. It's like you're just automatically assuming the arcade attendant at the front desk took the $10 bill you put into the token machine and walked down the street to Chic-fil-A and bought his lunch with it, so he's got no money to redeem your unused arcade tokens for.
lol this is what literally happens. Tether takes real money and gives out tether tokens and invest that money in things like treasuries and bitcoin. When the person wants their money back, they just handed the tether and get their money. So you’re right - this is exactly what happens!
All I'm saying is that no one knows if tether has the reserves to back the tokens and they seem reluctant to submit to an audit. I don't have any and I play BTC with ETFs. I don't really care which way it goes. I'm all about protecting my capital. It's in US and Canadian dollars. (I know not backed by anything!!!, especially the loonie)
USDT is used to pump crypto market across the board. Remove it, and there is no pump. Real money have fear, USDT is fake so fear component is not there like in any other market.
Spot on, but USD is backed by the most powerfully military on the planet and full might of USA economy. USDT on other hand printed out of thin air by just 4 shady guys.
If Tether implodes BTC will begin sinking since there will be no one doing damage control and it will spiral down in a hurry. 60k, 50k and much lower. Today if an issue is on horizon, push the button, print few billions and use them to make a market.