[cantrip]

Tether are, ostensibly, backed by $1 in a bank somewhere.

Having a dollar token is very useful, since you can move in and out of crypto trading positions into a stable store of value, good old USD.

Converting to real money takes a long time so you can't react to the market, and is also taxable and often has other fees on top.

[michaelchisari]

> backed by $1 in a bank somewhere.

Are we sure about this?

[runeks]

No, that’s the point, no one is sure about this. For a token that’s supposed to be redeemable in USD, the tether is extremely opaque.

[cantrip]

Yeah you took out the word ostensibly when you quoted me.

[tehlike]

Converting to another coin is also taxable. Similar to selling a stock.