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I've been a bitcoiner of a few years, but I could do with knowing more about Tether.
Not particularly as I'm worried about Bitcoin;
This article is decent in that regard. But to be better informed. Tether is always someones liability - there are billions sat on exchanges - surely they have better information than the rest of us? Are the quarterly BDO reports actually meaningful - if not proper audits?
Surely there would have been a run on them by now if there was a shortfall? Personally I think the simplest explanation is probably that they are fully backed - and now yielding 4-5% on $85bn which is insanely profitable with very few costs and no yield payable in return. There is a business case for them to exist and they were simply first in the market.
Have I got this right? Please let me know your thoughts! Would love to see any further resources on the subject. I know plenty of OGs are just bored of it but I've not seen a lot on the subject.
Tether is pegged to the value of the US dollar. It means unless we see something like what happened to terraUSD (which wont happen with USDT) where the assets and collateral backing the token doesn't actually exist, it will always be worth $1 USD.
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I think I heard tether concerns awhile back about a lack of audits? Are you aware of any proof of assets?
Thanks for your reply - and definitely agree it's a very different case to Terra Luna in its operations.
I suppose what I can't work out is - if they are fully backed - why not remove that doubt once and for all?
🍿
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It’s “dog shit wrapped in cat shit” as Michael Scott once said.
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