Re:Tether price manipulation
by atomicnumber3 on Friday January 08, 2021 @12:08PM
(#25686859)
It's basically the difference between a fiat currency and one backed by something.
For example, something vaguely analogous would be:
[Setting: The Olden Days]
GP: "I'm concerned because nobody has ever tried to take USD to the government and directly get silver/gold for it."
You: "Why is the "directly" part here significant? If I can USD (My Pocket) -> USD (My Brokerage) -> Gold (My Brokerage) -> Gold (My Pocket), then whats the difference other than a few extra steps?"
The difference is that we never tested to see if the USD is actually backed by real gold.
For example, something vaguely analogous would be:
[Setting: The Olden Days] GP: "I'm concerned because nobody has ever tried to take USD to the government and directly get silver/gold for it." You: "Why is the "directly" part here significant? If I can USD (My Pocket) -> USD (My Brokerage) -> Gold (My Brokerage) -> Gold (My Pocket), then whats the difference other than a few extra steps?"
The difference is that we never tested to see if the USD is actually backed by real gold.