Tether vs the Federal Reserve

 This is based on an article I read a few weeks ago that I can't find.  So take this all with a grain of salt and do your own research.

Could Tether be a competitor for the Dollar, or at least Federal Reserve Notes?  A dollar is just a unit of measurement, and Federal Reserve Notes (the cash you hold in your hand), bank deposits and credit cards are just implementations of it.  Tether is backed by US treasuries, ($126 billion if I remember this correctly), and it earns several billion dollars of interest per year.  The Fed loses money every month (because it is partly invested in Mortgage Backed Securities that only pay about 2% interest), although it can always print more.  

Can you get a bank account in Tether?  Not exactly, you have a wallet, which could get hacked.  With Tether you can either buy and sell Bitcoin (or other cryptocurrencies) or convert it directly to the US dollar.  But you could keep a good chunk of your money in Bitcoin, convert it to Tether and then sell the Tether whenever you need it at a fixed $1 exchange rate.

To be continued ...