[lamontcg]

Because nobody is going to be dumping $70B of actual USD into Tether while BTC is running up massively in value.

That would effectively be $70B parked under a mattress.

[vmception]

Tethers are only destroyed when they are redeemed. When people create Tether and trade them, they still exist with whoever is the recipient.

The same with other bank account stablecoins.

Much of that Tether is stored within liquidity pools and other onchain financial services, the same with other bank account stablecoins. So thats not a great assumption to bolster the ongoing transparency issues with Tether.