Its a way to add legitimacy to transactions. The idea is that 1 stable coin (usdt, tether, ect) equals 1 dollar. So you buy 100 tether for 100 dollars and you u

Its a way to add legitimacy to transactions. The idea is that 1 stable coin (usdt, tether, ect) equals 1 dollar. So you buy 100 tether for 100 dollars and you use that to buy your bitcoin. And that tether is supposed to be backed 1 to 1 with assets/cash. The problem is they arent. Tether for instance refuses to be properly audited. They keep saying that between cash and cash equivilants they are in parity. But per a Galaxy Research article its probably backed by 3% cash. and the rest is treasuries and commericial paper holdings. Which means that if some shit were to go down best case they can make 3% of people good. And the rest... who the hell knows. Its all a scam.