Quote from: Webetcoins on February 15, 2021, 08:25:31 PM

Proper reserve is a difficult question to answer for most of the satblecoin, how are they exactly backed, do they have billions of dollars on some bank account, do they have the paper for it on some vault? Do they have some digital numbers moving around from one place to another saying they are backed? Do they have bonds or gold or anything else worth that much? Do they have crypto that they bought with USDT which allowed them to be backed now but with a crash become not backed? There are a billion questions that could be asked about how they are backed even if they are backed.

Hence, I think it is not wise to use stuff like USDT, if you want fiat, go with fiat, if you want crypto, go with crypto, never trust your money with some stranger telling you that they have your money and will give it to you whenever you want, thats a shady business model from the start anyway.

Agree, USDT is not something I would be fine with. DAI on that fron is really a better version, not like I have any dai neither but I think it is at least a bit better because it is working towards becoming a bit more decentralized, and even though there are still things that are lacking there, it is a step taken in the right direction.

What USDT has is literally a company behind it working with a Bahamas bank in order to get away from regulations of USA and be free to do whatever they want with the money they have, is that really reasonable to say that they are legit? I know that they will screw people over and scam them as soon as they find a way to get out without anything bad happen to them. However DAI is not like that, it is decentralized and nobody at the top could steal it.