Comment on The Tether Conundrum: a look into a suspicious cryptocurrencyparentComments−tonyarkles8yNominally I'd think it's because they can, theoretically, be exchanged for $1 USD. Practically that's not possible currently (by the sounds of it), but it's the same reason people don't go around selling $1 USD bills for $0.90 USD.−aqme288yBut that hasn't actually been true since April. Are investors ~100% confident that it will be exchangeable again in the future?−jgautsch8yPerhaps people aren't rational all the time.https://en.wikipedia.org/wiki/Confirmation_bias#Persistence_...
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Nominally I'd think it's because they can, theoretically, be exchanged for $1 USD. Practically that's not possible currently (by the sounds of it), but it's the same reason people don't go around selling $1 USD bills for $0.90 USD.
But that hasn't actually been true since April. Are investors ~100% confident that it will be exchangeable again in the future?
Perhaps people aren't rational all the time.
https://en.wikipedia.org/wiki/Confirmation_bias#Persistence_...