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I'm a believer that Tether is incredibly sketchy, but there's one thing I don't quite understand. Can anyone explain why Tether's price never drops significant
by aqme28 9y ago
I'm a believer that Tether is incredibly sketchy, but there's one thing I don't quite understand.
Can anyone explain why Tether's price never drops significantly below a dollar?
- unknown_apostle 9y agoGood question. I'd say either the vast majority of tethers are held by the people behind Tether, and/or the non-Tether people who hold it are massively stupid. Any non-Tether people holding Tether are running a risk, with literally no long term upside. They say cash is the worst long term investment, well, Tether "cash" is even worse.
- tonyarkles 9y agoNominally I'd think it's because they can, theoretically, be exchanged for $1 USD. Practically that's not possible currently (by the sounds of it), but it's the same reason people don't go around selling $1 USD bills for $0.90 USD.
- aqme28 9y agoBut that hasn't actually been true since April. Are investors ~100% confident that it will be exchangeable again in the future?
- jgautsch 9y agoPerhaps people aren't rational all the time. https://en.wikipedia.org/wiki/Confirmation_bias#Persistence_of_discredited_beliefs https://en.wikipedia.org/wiki/Confirmation_bias#Persistence_...