Comment by irishcoffee
1 day ago
At the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool.
What a strange toss-up.
1 day ago
At the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool.
What a strange toss-up.
Usdc is backed by US dollar denominated treasuries for most major issuers.
It's broadly agreed that hasn't been the case for a while now, but that at the moment it's better for everybody if we pretend it still is
Is there actually any proof of this or is it Tether-tier magic money?
But the stable coins are also backed by the US military. All major USD stablecoins have sanctions mechanisms baked into their smart contract.
See for yourself the blacklist features
https://github.com/circlefin/stablecoin-evm/tree/master/scri...
> US dollar is backed by the US military.
No, it's not. It's not possible to come to the US soldiers with a bunch of US dollars and some demands and get what's demanded in return for the dollars.
Only trust of the other market participants backs the US dollar.
It's the other way around. If you don't trade in dollars, the military comes and demands that you do.
Is the peso backed by the Mexican government? Because I'm afraid of all these militaries coming and knocking down my door to use their money.