Imagine what happens when all those saved tethers converts …
Imagine what happens when all those saved tethers converts to actual dollars if/when a big position exited the market in a short timespan.
1:1 or will we see something never seen before?
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At what point will people simply consider tethers to be "actual dollars".
I mean what is an "actual dollar" any way? Banks create dollars out of thin air using loans which our backed by an opinion about the solvency of the loan... seems similarly trusted.
USD is not affected by selling pressure (only inflation) & has the biggest tax paying base tied to it.
Tether may have a problem to exchange at a big exit position (increased demand) to USD as selling pressure on backing assets creates a negative spiral.