The Big Short movie, BTC edition?

[drangos]

I believe the more serious issue isn't whether or not USDT is 100% backed. But whether users would be able to withdraw USDT in large numbers if there was a market panic. Reserves can appear abundant on the balance sheet, but are not necessarily available when needed or easily extracted from the system. If there are a lot of traders using USDT at the same time then the confidence in the USDT's peg really matters. With that being said. A depeg is a risk scenario and does not mean that a collapse is unavoidable. Sometimes, you have to be careful not to take anything for granted. Especially when it comes to the withdrawals process.

[bbc.reporter]

@drangos. Similar to the fractional banking system similar to the traditional banks, if everyone holding USDT will decide to exchange their USDT to real American dollars, we can quite he certain that not everyone can do this heheheheh. What might occur is something similar to a bank run because Tether is a fractional system created on top of a fractional banking system heheehehehehehee.

The Big Short occurrence in the cryptospace might happen not soon, however, to declare that this is impossible will be headshaking.