Tether and Stablecoins

[33QE]

How does any of these stablecoins have any value? And does it have to be pegged to something specifically?

Cuz Tether is backed by assets and reserves that aren't on-chain. The US Dollar is backed by the belief that it is worth 1USD but it's propped up by the fact that the US is the strongest military in the world.

If the Fed can print money out of thin air and Tether can too , How does this even make sense?

What is forcing someone from making their own "Tether" and saying its worth 1USD because i said so?

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[Gyfts]

It's not supposed to make any sense. USD or Tether, you have to trust the issuer to maintain the value of the asset. Doesn't take much for confidence to tumble like a stack of cards if the market decides that there's too much uncertainty in your asset. Nothing's stopping you from creating your own centralized crypto and pegging it to whatever you feel like as long as you can convince people you have the underlying assets to maintain solvency. Tether claims to have nearly 70 billion dollars in assets so whoever wishes to put any of their funds into Tether better hope that those assets are real.

[33QE]

It's not supposed to make any sense. USD or Tether, you have to trust the issuer to maintain the value of the asset. Doesn't take much for confidence to tumble like a stack of cards if the market decides that there's too much uncertainty in your asset. Nothing's stopping you from creating your own centralized crypto and pegging it to whatever you feel like as long as you can convince people you have the underlying assets to maintain solvency. Tether claims to have nearly 70 billion dollars in assets so whoever wishes to put any of their funds into Tether better hope that those assets are real.

so pretty much this world is clown world and we live in a time where our money doesn't make sense. Got it.

Long Bitcoin , Short the bankers.