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Is this right: The problem with tether is a lot of crypto use it as sort of an "on-chain peg" and some people trade "real value crypto" (bitcoin) for tether. I
by lbotos 5y ago
Is this right:
The problem with tether is a lot of crypto use it as sort of an "on-chain peg" and some people trade "real value crypto" (bitcoin) for tether. It's not a problem until the actual tether holders can't cash out to fiat.
The secondary effect is that tether may be pumping the price of all crypto everywhere because it's so ubiquitous.
Do I have this right? I'm mostly stuck on the "value" of tether beyond some sort of "accounting" or "tax avoidance" (no judgement here, trying to figure out why ppl would have tether's instead of "actual crypto".
- Osiris 5y agoIf one is using something like Uniswap to exchange crypto, you cannot go directly to Fiat, so people that want to sell a token or Ethereum will trade the asset for USDT and then later trade the USDT for another asset when the price has dropped. It's just a way to buy and sell crypto with an intermediate asset that has almost no price volatility.