At best they have 60% of claimed reserves.

It would need to be a big run but it will happen sometime. They don't have good stewardship of the reserve funds

people been saying this since 2017. probably the same who feared covid and got 3 doses asap "to not die" lmao
Do you also think fed has a 1:1 ratio backup for every dollar they print bro ?

This post was edited by Melatonina on May 12 2022 11:46am

Why would the fed have a backup? They aren't pegged to an asset. Don't tell me you don't even know the difference between a fiat and a pegged currency

maybe I've wrote it wrong because my english isnt best.
how do they guarantee dollar's worth exactly ?
oh wait, I already know. they dont anymore since Nixon. its a shit coin that will slowly disappear and yup, usdt is based on it

This post was edited by Melatonina on May 12 2022 01:47pm

🚀🚀🚀🚀

Fundamentally USD is backed by the need to pay taxes in USD if you operate within the United States. In practice this means everybody uses it, and the more productive the economy that uses it is, the higher its value. Fiat currencies not being pegged to a physical asset does not mean the value is baseless.

USDT is supposed to have 1:1 reserves. They initially claimed they would verify this with regular audits, but when they tried to get an auditor to verify their operations they refused to comply with the auditor because they were "trying to get too specific". I.e. the auditor was trying to do their job and that wasn't convenient. To "verify" that they had the funds they did a snapshot of their bank account, which coincidentally coincided with a lot of sales of btc and re-buying btc right after. When people dug in more, they realized the funds are basically not there at all, and is probably being held as assets by Bitfinex.

They no longer claim to be totally backed, and now give a breakdown on their website of all their assets that they use to back tether should a bank run happen.

https://tether.to/en/transparency/#reports

However, we can regard a lot of this as effectively worthless. For instance, "commercial paper" which represents 36.68% of their "cash equivilant" reserves (23 billion in commercial paper) means loans to companies that isn't secured by collateral. Typically this is only given to exceptionally high reputation and cash flow companies like Apple or Google. There is no oversight into Tether's loans and nobody knows who they are giving it to. Nobody who works to organize commercial paper has ever heard of tether even though they would be one of the largest players in the world. If shit hits the fan with the wider economy, like what happens now, we can assume that will vanish.

So here's the short version. Tether is not a good steward of its reserves, and once they have a bank run that outpaces their reserves, tether goes to zero. I can't say when that will happen, but it will happen unless tether gets its shit together.

This post was edited by NetflixAdaptationWidow on May 13 2022 12:33pm

Imma just pay myself on the back for buying the dip, started my position at $52

it's the same for about any money, their only value is based on trust from the users, and can go anytime to zero. you're just parrotting some reddits/twitter snowflakes with outdated info on top of it.(bolded)

It isn't true for any money. As I already said, the true determination of the value of a dollar is the productive capacity of the economy that uses it for taxes. There is inherent supply that is maintained by the need to pay taxes on all earned income.

The bold is more true now than ever. Tether has not made good stewardship of its money, and a large portion of their reserves are likely gone. Once the stewardship gets bad enough and there is a large enough bank run, they will collapse.

"it's likely like I say" " covid vaccines are likely to work"
Always using the same broken metholody I see.
Sounds like you just described us dollar once again m8.
Whats even more funny is that the first society that is "likely" to embrace hyper-bitcoinisation is USA. Paying taxes in us dollars is almost like talking of the past if you can see the pattern behind it.
Us debt > amount of stars in our galaxy. Got it chump it will collapse.

This post was edited by Melatonina on May 14 2022 02:15am