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150 sats \ 2 replies \ @kr 17 May 2023
this is really interesting.
essentially, all US taxpayers are indirectly funding Tether’s Bitcoin purchases now.
US tax revenue goes out to pay interest on treasuries, and tether received that interest and converts some of it into BTC.
the next question this strategy raises is: what can the US do to stop Tether without defaulting on their debt?
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19 sats \ 0 replies \ @028bb200f9 18 May 2023 freebie
Somebody needs to buy the debt. The treasury doesn't care who buys it as long as somebody keeps playing fiat musical chairs.
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0 sats \ 0 replies \ @lpop4254 OP 17 May 2023
Yes sir
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0 sats \ 1 reply \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
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0 sats \ 0 replies \ @SpaceHodler 18 May 2023
This has nothing to do with the peg.
They're investing their profits in BTC, not backing the coin with BTC.
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17 sats \ 2 replies \ @Ganjamon 17 May 2023
So do we like Tether now?
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100 sats \ 0 replies \ @kr 17 May 2023
i don’t have a horse in the stablecoin race, but i think the consequences of tether buying bitcoin with us taxpayer money will lead to some interesting outcomes… i’m watching this closely.
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3 sats \ 0 replies \ @lpop4254 OP 17 May 2023
No we hold ,f# k tether
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0 sats \ 0 replies \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
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0 sats \ 0 replies \ @faithandcredit 17 May 2023
deleted by author
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0 sats \ 0 replies \ @lunanto 18 May 2023
Bitcoin is the nature reserve and this show why it is the perfect store of value
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0 sats \ 0 replies \ @elprotonhenrique 18 May 2023
Call me when they're ready to invest 100% of its profits lol.
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0 sats \ 0 replies \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
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0 sats \ 5 replies \ @go 17 May 2023
How the hell does a stable coin make profit?
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77 sats \ 0 replies \ @lpop4254 OP 17 May 2023
You switch with them your us dollar in the bank and you take their token , so they got us dollar and they buy us treasury short term 5%
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0 sats \ 3 replies \ @kr 17 May 2023
they hold short term US treasuries, which pay them interest (and a lot more interest now that benchmark interest rates are around 5%).
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598 sats \ 2 replies \ @orthwyrm 17 May 2023
Not to mention that Tether's operating costs are likely far cheaper than a typical bank. Holders of USDT aren't even expecting those interest rates to be passed onto them.
I don't use USDT nor would I recommend it, but I have to admit they have a neat business model.
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0 sats \ 1 reply \ @kr 17 May 2023
yeah good point, are they the most profitable business in the crypto industry?
can’t think of anyone else who is making that much money right now…
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17 sats \ 0 replies \ @orthwyrm 18 May 2023
Not sure. I guess minting shitcoins out of nothing and dumping on retail will always be profitable too!
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