You don’t buy Tether as an investment, you buy it to enable you to more easily trade into other stuff.
Many non-US exchanges can’t trade in actual dollars, because they don’t meet the proper regulations to be connected to the US banking system. But since these Tethers exist, they can trade USDT, and pretend they represent actual dollars.
If you want to trade from one obscure shitcoin to another, that trading pair doesn’t exist. But odds are good that both coins are traded with USDT, so you can do the trade in two transactions by going through USDT first.
We don’t really know whether Tether is fully backed, though. As long as they meet their redemptions when people ask for USD in exchange for tether, it may not really matter. I suspect the biggest holders are exchanges, who will never redeem their tether for USD because they need to keep it in USDT for their trade liquidity.
Please learn what stablecoins are actually used for so you don’t look as uninformed as you apparently are when replying to topics you apparently know nothing about.
Why would anyone buy thether as it will absolutely lose value year on year as the dollar loses value?
They’re called “Stablecoins”, what could go wrong?
Stablegeniuscoins.
You don’t buy Tether as an investment, you buy it to enable you to more easily trade into other stuff.
Many non-US exchanges can’t trade in actual dollars, because they don’t meet the proper regulations to be connected to the US banking system. But since these Tethers exist, they can trade USDT, and pretend they represent actual dollars.
If you want to trade from one obscure shitcoin to another, that trading pair doesn’t exist. But odds are good that both coins are traded with USDT, so you can do the trade in two transactions by going through USDT first.
We don’t really know whether Tether is fully backed, though. As long as they meet their redemptions when people ask for USD in exchange for tether, it may not really matter. I suspect the biggest holders are exchanges, who will never redeem their tether for USD because they need to keep it in USDT for their trade liquidity.
Please learn what stablecoins are actually used for so you don’t look as uninformed as you apparently are when replying to topics you apparently know nothing about.