To an extent, I agree. But we know that USD is guaranteed to lose value. Its literally set up that way. So although there is little chance of a total collapse over night with regards to USD, there is a guaranteed loss in the long run. I'm seeing numbers like, based on recent CPI surges, that in about 6 years, USD has lost 50%. (this was based on roughly 12% inflation if you truly measure it) But given the current landscape, do you really think the US can bomb any country at will like it did for the past few decades? About all the US can do now is a proxy war, and even support for that is waning. Trump will be the next president, and its been pointed out that during his previous tenure, there was no war. I think its likely that the future of wars isn't dropping bombs, but financial wars. The US cannot win this one unless it takes a Bitcoin approach. This genocide in Gaza is the last straw, and Ukraine conflict is just about over as well. Using wars to promote and protect USD is over.
That was the original idea. Until they got caught lying. First they said every Tether is backed by USD. Once this lie got exposed, they said well we not actually backed by 1:1 with USD, but by mixture of USD and commercial paper. Once Bloomberg exposed commercial paper lie, they said that they liquidated all commercial paper and now are fully backed by treasuries. That can easily be proved with an audit, and yet non was ever done. Once every few years they say they hired auditors, and audit forthcoming, and of course non is ever produced. The latest claim was BDO Italia (very reputable firm) about 2 years ago, and I predicted back then that no audit will ever be produced. The bottom line, all signs point to the fact that are world largest financial fraud.
I will agree with you that you aren't wrong in your thesis. There is no guarantee that if you own USDT, you will always have access to it, and that you can always redeem it for something else. Fiat currency is much more likely to always be protected. But you're paying a price for that. When governments do bailouts, your fiat is devalued, guaranteed. Your brokerage also has a certain amount of risk involved. You own "tokens" for stocks, that you hope you can redeem one day. You also hope the government doesn't flag your account or the broker doesn't drop you. You hope your bank account isn't frozen, and in recent years, many have had this happen to them. Your entire life is pretty much all tokenized. Even your house requires that you keep paying property taxes, and you hope that if a squatter takes it over, that the police will step in and give it back to you by kicking the squatter out. (and this takes months!) If your goal is to prevent counter party risk, which is a good thing to be aware of, there is simply nothing better than bitcoin in cold storage that you have the private key for. There is nothing that anyone can do to shut down the network. Even if Canada goes to shit, you just leave, with all your wealth. You don't need to log into your trading account, hope you can sell the ETF, hope you can transfer that money to your bank account, and hope the bank allows you to withdraw that money. And withdraw into what? Another bank account? Take out cash that can be confiscated at the border? If the scenario that you are trying to protect against is USDT imploding or those tokens having no backing and cannot be redeemed, you have to also consider losing access to all your fiat, and investments, and property. All of these require multiple levels of permission.
I'm more afraid of inflation killing my fiat value that any of the other scenarios you have presented. Keeping in mind that I'm Canadian and have seen the value of our dollar rise and fall several times compared to the USD. What I do know is that the US dollar is pretty stable and from what I understand accepted around the world. Try spending Canadian in mexico. As for crypto I'm not convinced of it's safety. I'll bet if push comes to shove the government could shut down the internet or at least control US internet providers. I may be wrong but I believe that some countries restrict access. (China, North Korea, etc). Have you considered that possibility? I don't think it's probable but is it possible? There is an upside to government bailing out the big boys, there is a back stop. With crypto you have none.
WTF is going on. The more we talk about Tether fraud... the higher Bitcoin goes. It's like a reverse Streisand effect or something...
If the internet goes down, we have far bigger problems. Look at what happened when Crowdstrike caused all those windows machines to not boot up. Electricity and water will likely not work when the internet goes down. So this isn't something I worry about. At worst, the blockchain will continue in other parts of the world, and then when things are back online, all the nodes that were offline will just sync up where ever they left off. The upside to governments bailing out the big boys is exactly why we are in the mess that we are in. It won't take long for the bottom of the population to realize they have no future and revolt. I don't know if the collapse is coming in 2 years or 20. But if you consider that the government has to go $2T into deficit, just to make it appear that the GDP is growing at 2%, and waste all that money and create useless government jobs, it shows that the system is so badly broken already and the only thing keeping it together is literally handouts. That is what government jobs are. The last last gasp of a system that has failed. The backstop of fiat printing will day do absolutely nothing. When the government tries to bail anyone out, with money that everyone knows just leads to inflation, that bailout won't do a damn thing. I kind of think that the chances of that happening this decade are quite high.
what do you mean tether owners can mint as much as they want? I have a very nominal amount of tether currently, can you tell me how to mint more for free? That would be awesome.
I think he's referring to the owners of Tether (the company). That's the reason why a lot of his posts don't make any sense because he keeps referring to "tether owners", which a lot of people are misinterpreting as "tether token holders", but he means the executives of the company called Tether can create and sell as many Tether tokens as they want.