The more that other fiat devalues, more people will use USDT
And the more profits Tether makes
The more bitcoin they'll buy as a result
And the more that Bitcoin grows in value, the more the proportion of value which Bitcoin backs USDT grows
And at some point, the value of Bitcoin that backs USDT > value of US Treasuries that backs USDT
And now you essentially have a currency that is backed by Bitcoin
What am I missing here?
it’s a lot of centralization and control for one company, not that the fed is any better
True but it's not like there's going to be just one stablecoin issuer that does this
Wouldn't be surprised if Circle does this as well
fingers crossed for competition and freedom to choose
Might be difficult in this case considering Tether’s network effects though. So your concern about centralization is valid.
It’s more of a policy problem where the USG needs to get out of the way of other Stablecoin issuers and let them compete.
