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Surely the only way to keep the valuer of tether stable is to "print" more of it whenever its value starts to increase? Otherwise it wouldn't be always worth $1
by sharperguy 6y ago
Surely the only way to keep the valuer of tether stable is to "print" more of it whenever its value starts to increase? Otherwise it wouldn't be always worth $1.
- xur17 6y agoThat or provide on and off ramps that users can use to arbitrage any deviations from a value of $1.
- qeternity 6y agoWhich they cannot do because 1) they don't have any banking and 2) they cannot allow redemptions which would risk a run on their reserves (to the degree those exist at all).
- olalonde 6y agoExcept they do allow redemptions: https://app.tether.to/app/signup https://app.tether.to/app/signup
- qeternity 6y agoNobody in the history of crypto has ever demonstrated this. Not a single person.
- olalonde 6y agoNobody in the history of crypto has ever attempted it or no one has ever demonstrated it? It seems improbable no one has ever attempted it. And there's no reason to demonstrate if it is successful. So I'd argue the lack of failed demonstrations is evidence that it works.
- qeternity 6y agoNot sure if trolling but why would Tether ever be worth more than $1? Printing USDT is not the same is issuing new fully backed USDT.
- callamdelaney 6y agoTethers only value is as a proxy for the dollar, as such it can only ever be worth a dollar. The exceptions are when a market is crashing people would rather have dollars, and we will see prices above a dollar due to high demand - though the intrinsic value should never change.
- alisonkisk 6y agoWhen market crashes Tether prices go below a dollar because dollars get (relatively) expensive.
- Triv888 6y agoThey would have to destroy some too at some point otherwise the price would go down? Do they do that?