I had no idea that USDT was backed up by American Debt! Very fascinating.
Discussion
It cracks me up when someone tells me " I don't understand Bitcoin." I reply " But you do understand the Federal Reserve and the fractional reserves banking system? "
Biggest scam excepted by most people.
1) its not “backed” in that you cannot exchange your tether for the debt, and
2) its a circular digital fiat in this way: tetherCo issues a digital tether token, fed issues debt for fiat; tetherCo uses the fiat received to buy debt. End result is conversion of fiat to digital fiat.
Thanks for the additional info. “Secured” could be a better word, perhaps?
It’s still just basic economics that blows my mind. Illusory (printed) DEBT has a value, and it’s being sold and traded as such. Just, wow.