> They seem to be profiting off the assumption that from the name, they would be as tightly controlled as a central bank. But it's very clear from dodgy stuff they've already been involved in, that they're absolutely not.
Alright, then don't trade in their token. Or short it, if you think it's going to collapse in value anytime soon.
> But of course, I wasn't first and foremost talking about them, I was talking about the 800 dollar gorilla, Tether. They're now where Mt Gox was ca. mid-2013, with "everyone" knowing they're extremely dodgy and likely to collapse, but hoping to make money off those who haven't realized it yet.
Well yes, the whole point of a decentralized ecosystem is that it gives people the freedom to do things without government stepping in and telling them no, for better or for worse. Tether is free to print as much Tether as they want, and everyone else is free to hold or not hold USDT if they want. Caveat emptor.
> As to "tracking" real world assets, that mechanism of tracking is a weak point, rendering all the other "guarantees" moot.
Sure, that is still a centralized point of failure. But the other decentralized benefits still hold. No government sanctions can prevent you from buying this gold-backed crypto, if you so wish. Or if you have it already, from selling it for something else. Nobody to enforce pattern day trading rules on you. For better or for worse, it still gives you all the benefits that decentralization entails.
> So is other fraud. Doesn't mean it isn't money out the window.
It's money circulating through a different part of the economy than it would've otherwise. It's valuable to the people participating in it. Not to you, obviously. To other people.
> For that matter, you don't know how much of the economic activity is real.
Of course, that's the whole point. But you can still make educated guessing. Looking at the size of various illicit businesses, money laundering is obviously a billion dollar global industry. Why? Because a lot of people find it valuable. Not you, obviously. Other people.