How does the control of stablecoin tether by people affect its stability?

3 answers

• May 03, 2022 · 3 years ago
  The control of stablecoin tether by people can have a significant impact on its stability. As a stablecoin, tether is designed to maintain a 1:1 peg with the US dollar. However, if people lose confidence in tether and start selling it in large quantities, the demand for tether decreases and its value may drop below the peg. This can lead to a loss of stability and trust in tether as a reliable store of value. On the other hand, if people have faith in tether and continue to use it for transactions and as a hedge against market volatility, its stability can be maintained. Therefore, the control of tether by people plays a crucial role in determining its stability in the cryptocurrency market.
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• May 03, 2022 · 3 years ago
  Well, let me tell you something about tether. When people have control over tether, it's like having the power to influence its stability. If people start selling tether like crazy, its value can go down and cause instability. But if people keep using tether and believe in its stability, it can stay strong. So, it all depends on how people handle tether and their confidence in it. It's like a game of trust in the cryptocurrency world!
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• May 03, 2022 · 3 years ago
  As a representative of BYDFi, I can say that the control of stablecoin tether by people is a crucial factor in determining its stability. If people lose trust in tether and start selling it, the market demand for tether decreases, which can lead to a decrease in its value and stability. However, if people continue to use tether and have confidence in its stability, it can maintain its peg to the US dollar and remain stable. Therefore, it is important for people to carefully consider their actions and decisions when it comes to tether to ensure its stability in the market.
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