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Tether are, ostensibly, backed by $1 in a bank somewhere. Having a dollar token is very useful, since you can move in and out of crypto trading positions into

Tether are, ostensibly, backed by $1 in a bank somewhere. Having a dollar token is very useful, since you can move in and out of crypto trading positions into a stable store of value, good old USD. Converting to real money takes a long time so you can't react to the market, and is also taxable and often has other fees on top.

michaelchisari 9y ago
> backed by $1 in a bank somewhere. Are we sure about this?
- runeks 9y ago
  No, that’s the point, no one is sure about this. For a token that’s supposed to be redeemable in USD, the tether is extremely opaque.
- cantrip 9y ago
  Yeah you took out the word ostensibly when you quoted me.
tehlike 9y ago
Converting to another coin is also taxable. Similar to selling a stock.