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by aqme28 3079 days ago
I'm a believer that Tether is incredibly sketchy, but there's one thing I don't quite understand.

Can anyone explain why Tether's price never drops significantly below a dollar?

2 comments

Good question. I'd say either the vast majority of tethers are held by the people behind Tether, and/or the non-Tether people who hold it are massively stupid. Any non-Tether people holding Tether are running a risk, with literally no long term upside. They say cash is the worst long term investment, well, Tether "cash" is even worse.
Nominally I'd think it's because they can, theoretically, be exchanged for $1 USD. Practically that's not possible currently (by the sounds of it), but it's the same reason people don't go around selling $1 USD bills for $0.90 USD.
But that hasn't actually been true since April. Are investors ~100% confident that it will be exchangeable again in the future?
Perhaps people aren't rational all the time.

https://en.wikipedia.org/wiki/Confirmation_bias#Persistence_...