Yes - Lets say in the future BTC hits $8000 (or more) and then begins to crash - and by that time Tether has gained popularity - and so 20-50 BILLION dollars pour in - I just dont see how in the world they could immediately have those kind of USD assets at their disposal...
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Doesn't matter if it's hundreds of million or billion US$ - if they really match the outstanding USDT with dollar (as they say they are doing now), the money will be there. But I do worry about the temptation to engage in fractional reserve like what the banks are doing. It might become 1 USDT might only be backed by $0.20 or so over time.
Yes, I agree - and how could a altcoin company suddenly have billions of dollars at their disposal - just because someone bought their coin on an exchange? Yes the fraction reserve thing is awful, but who is to say they wont just fold up and go home after 50 billion is dropped into Tether on a big crash day?
Thanks Ahmad, followed.