I don't have enough information to say whether USDT is fully backed or not. If you're right, it makes it all the more important that we have markets for price discovery and trading of claims.
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I hear your max ROI in short term, which I get. The reality is crypto tokens are still in a pre-commercial phase. Every bank in the world is in default competition with every USD stablecoin. I expect fiat tokens to play out like the Groundhog Day movie. Every scenerio bad.
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I expect fiat tokens to play out the same way I expect fiat to play out. A tokenized 💩 currency is a 💩coin, but fiat reserve tokens do serve a purpose, which is to have a digital representation of fiat which can be moved without the banking system and used in smart contracts.
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Any pegged fiat token without pegging eventually succumbs to lack of liquidity due to lack of banking system access. USD market cap when factoring UST interest rate swaps alone are well over $500 trillion and like more like a few quadrillion $. BTC just hit $100 billion again.
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Banking system access isn't a strict requirement. Fiat can be vaulted and cash shipped around the world, tokens redeemed at warehouses.
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Try actually getting pallets of cash without being tied into the banking system. Impossible. And if you do by some miracle collusion, you’re looking at 2% bare minimum to more like 10% deposit fee. & easy for a central bank to remove useability. ♥️s this trick.
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I don't doubt it. I think we agree that fiat sucks.
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Fiat kills. Why it is vital to front end a psychopathic format.
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looking forward to the day we can delist all fiat currencies.
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We built a safe way to transition from fiat. Gold’s a great bridge. Governments are forced to lax laws on buying gold for retail to mop up the $100B+ extracted yearly supply as gold sits on the fiat base, real estate next. 🌍🌏🌎 needs asset tokens for crypto commercialization.
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I would definitely support holding gold as a store of value above fiat. I don't know what the regulatory implications are of trading gold. Not sure why more aren't doing it.
The short answer is it’s hard. You can’t use a major bank services co like Brinks, Loomis, G4S, etc in the US due to e-gold failure AML/KYC 15+ yrs ago. Plus sourcing. & you need a moat-like scalable indisputable bar inventory log anchored in Bitcoin like we built .
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And let’s remember market timing too. Between USDT, fiat stablecoins and DGX up over $4 million, 4x USDT its first year on 2015-16, marketing timing is finally right for a fully gold backed stablecoin.
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