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Well, when you can't exchange Tether for USD and they can print as much as they want, and everybody just takes their word that they have the cash backing up the 1:1 ratio which is volatile (when it shouldnt')

If it quacks like a duck, looks like a duck, it probably is a duck. But hey, I'm just a buttcoiner.

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Yeah, you can exchange them for USD if you have a minimum transaction of $100,000 :)

wonder what would happen if you tried to do $100M...shouldn't be a problem, right?

Haha, good question. My guess is Tether Limited would very happy to collect their $100K in transaction fees and send you on your merry way.

https://tether.to/fees/

> everybody just takes their word that they have the cash backing up the 1:1 ratio

Most people dont care if they have full reserve. I dont care if there is full reserve at my bank. I care that there is enough reserves.

Banks dont base their entire operation on a lie that they have 100% reserves. And the exact reserves are audited.

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