What a great idea.
I guess it was just a matter of time.
But only Tether can pull it off this early in the game.
What Did They Do?
Gold-backed dollars. Like we used to have when dollars were worth something.
The project is called “Alloy”, and the ticker symbol will be aUSDT
Very cool. Dollars guaranteed by gold instead of USD treasuries.
Of course this will make up a very small piece of the total pie, but this to me will be one of our more interesting pieces of financial history.
Why Do This?
Likely to diversify.
The USD is the safest currency in the world, but it, and US Treasuries do have some risk, far-fetched as it can seem.
Why have the biggest chunk of your company (by far) dependent on one currency?
I’ve been saying this for years. Spread….it….out.
Tether already has lots of gold reserves with their XAUT product, so they have the resources for this built-in.
You too can put your money in pre-Nixon dollars.
No word yet on how this will actually hold its value, there is very little material on this so far, but keep your eyes open.
Will I Buy?
Right now no, there’s no big USD risk right now IMO, nor will there be for awhile.
Plus, I don’t buy anything right when it comes out. I give it time to work the kinks out.
But it’s super cool, can’t deny that.
— VP