[rhino369]

It's not a scam if everyone knows how the system works. The Federal Reserve doesn't pretend like the dollar is backed by anything. The Federal Reserve also manipulates supply to try to keep prices stable. They've messed that up the last two years, but rather just continuing to print money they are reducing the supply on purpose.

It's nothing like Tether.

[roenxi]

Everyone knows how Tether works. I bought some after the de-peg before the most recent one anyway because I needed something worth about $1 USD to buy Monero. And I'd still be happy to point out that USDT is unbacked and extremely risky (ie, going to collapse eventually by design).

It is obvious that the people who own "wealth" in Tether will lose it sooner or later. If there are a large pool of people who believe Tether is 1:1 backed they:

1. Haven't read any news about Tether.

2. Haven't researched it at all.

3. Aren't a member of any social network like HN where Tether's flaws are trumpeted.

4. Are quite gullible.

EDIT 5. Haven't looked at a price chart of Tether showing it's regular de-pegs.

Such a person will fall for any scam, Crypto-related or otherwise. Regulated industries will still have people willing to take all their money since they aren't financially literate.

> The Federal Reserve also manipulates supply to try to keep prices stable.

Prices rise continuously, that isn't stable. The Fed tries to keep the rate that the US dollar loses value stable. The backers of Tether are making better guarantees than the Fed are - actual stability. They have less power to force people to go along with them though.