Is Tether (USDT) a Good Cryptocurrency? - Market Mad House
Tether’s Coin Price raises serious questions about the whole concept of stablecoins. There is no direct conversion between Tether and the dollar. Indeed, a person converting Tether (USDT) into greenbacks lost 1.22¢ on the transaction on 19 October 2018. That will convince many that conversion mechanisms like Uphold’s API are a better deal. A logical conclusion is that the market prevents one-on-one conversion of Tether. To explain, Tether or exchanges have to buy dollars on the market for conversions. Hence, they have to pay the market rate for dollars. Moreover, the exchange or Tether charged the market Coin Price for USDT. Under those circumstances, a one-on-one conversion of Tether is impossible. Another conclusion we can make is that stablecoins are impossible. To explain, it is not possible to create a cryptocurrency with one-on-one conversion. One-on-one conversion is impossible because Mr. Market controls the price. The only to change that is to keep altcoins off the market. That is impossible because anybody can sell cryptocurrency anytime.
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