pull down to refresh
related posts
0 new comment
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?
reply
0 new comment
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.
reply
0 new comment
0 sats \ 0 replies \ @lpop4254 OP 17 May 2023
Yes sir
reply
0 new comment
0 sats \ 1 reply \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
reply
0 new comment
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.
reply
0 new comment
17 sats \ 2 replies \ @Ganjamon 17 May 2023
So do we like Tether now?
reply
0 new comment
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.
reply
0 new comment
3 sats \ 0 replies \ @lpop4254 OP 17 May 2023
No we hold ,f# k tether
reply
0 new comment
0 sats \ 0 replies \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
reply
0 new comment
0 sats \ 0 replies \ @lunanto 18 May 2023
Bitcoin is the nature reserve and this show why it is the perfect store of value
reply
0 new comment
0 sats \ 0 replies \ @elprotonhenrique 18 May 2023
Call me when they're ready to invest 100% of its profits lol.
reply
0 new comment
0 sats \ 0 replies \ @faithandcredit 17 May 2023
now tether will lose its peg? or be more than $1 USD?
reply
0 new comment
0 sats \ 5 replies \ @go 17 May 2023
How the hell does a stable coin make profit?
reply
0 new comment
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%
reply
0 new comment
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%).
reply
0 new comment
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.
reply
0 new comment
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…
reply
0 new comment
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!
reply
0 new comment
0 sats \ 0 replies \ @faithandcredit 17 May 2023
deleted by author