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Value of Tether is nominally $1, right? So why would you expect it to significantly deviate from that value?
by windows_tips 8y ago
Value of Tether is nominally $1, right? So why would you expect it to significantly deviate from that value?
- rjbwork 8y agoBecause even though they say that it's backed by a dollar per tether, there's literally nothing that is keeping it from being traded like a speculative security like BitCoin and other cryptos are.
- windows_tips 8y agoWhy would anyone speculate it to be worth more than a $1 though?
- kyrieeschaton 8y agoLiquidity premium on having your nominal dollar already in crypto for trading; liquidity premium of being able to send stable nominal dollars via crypto mechanisms. Consider, why do some bonds trade at negative interest rates?
- windows_tips 8y agoseems like that premium would be tiny