Given the "market price" of most crypto is based in USDT not USD it kinda makes you wonder how legit any of the "market price" figures really are? Plus given there is absolutely no auditing for any of the exchanges in the market, for all you know "market price" could be determined by nothing more that scripts that just SQL INSERT fake transactions in their database (assuming they are using SQL.... which given this is crypto is suspect.... I wouldn't be surprised to learn many of these people are using things like mongo to handle their financial transactions)
> Your local bank has a much, much lower reserve ratio than this.
My local bank is also audited and heavily regulated. I sleep every night without ever worrying that my bank is suddenly going to lose all my money.
Also, given that bitcoin's ethos is all about being anti-fed and "no printing money" it is rather funny to hear somebody defend tether being anything less than 100% backed by some "real" asset.