Doesn’t tether fud apply to literally all USD in normal bank accounts?
Both aren’t backed by anything, both are susceptible to bank runs, both can be printed willy nilly, what’s the problem here
Discussion
What is tether fud?
That they might be printing tether with nothing to back it up, which props up bitcoin price via artificial demand such that if tether ever gets a bank run or implodes, so too bitcoin
Something is off. BTC is backed by mining expenses which is a hard expense no matter what currency you measure with just like gold mining. USDT is backed by USD assets even if they collapse it affects the USD pair so BTC/USDT will rocket and USDT/USD will tank.
If USDT/USD tanks because tether doesn’t actually have the t bills or whatever else in their coffers, wouldn’t bitcoin also crash if a big chunk of it was bought with worthless USDT? (Quite honestly I think people would just scoop it up like post FTX)
But really the only difference I see between the collapse risk of USD from banks and from tether is that if tether does implode, the government has a possible political issue with bailing out a foreign company whereas they don’t with US banks—although does anyone care anymore, they prop up many cross national corporations all the time
I don’t think so, what it really crushed is USDT. Whoever holds that usdt from that trade is rugged. It will have temporary effects on everything though.