What is the point of stablecoins?

While predictable cryptocurrency may sound like an oxymoron, stablecoins – like their name suggests – were designed to counter crypto’s hallmark volatility and provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market and to allow users to pay for everyday goods …

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How does USDT make money?

The USDT peg is managed by using a collateral . Tether Limited claims that for every 1 USDT that exists, there is 1 USD worth of currency kept at the reserve. In order for the price of 1 USDT to equal 1 USD, it has to be redeemable for 1 USD fiat currency at any time.

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Can you make money on USDT?

Tether itself doesn’t make money , on the contrary it loses money. (buying or selling crypto at a loss, paying banks the interest rate) It was created by Bitfinex with intent of manipulatively increasing trading volume and profits made by the fees.16 Eki 2018

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