USDT doesn’t seem to be tied in volatility to bitcoin at all, and it’s not part of an investment vehicle, only for transactions—it’s not making any claims (or history) of appreciation or returns. It publishes its reserve allocation at https://tether.to/en/transparency/#reports . It’s certainly less safe that US treasuries (and presumably that funds their profit margins, which I presume are smaller than any other coin). But more convenient as transactional assistance (actual money) than most banks, for at least some things.
For your question, it seems less risky to hold USDT than almost any other crypto vehicle. But it also seems less rewarding, if held directly. The question remains “WHY is anyone holding significant amounts of USDT for very long”? My answer is “USDT itself is pretty safe, but there are a lot of exchanges offering interest on USDT on their platform”. Those platforms are mostly at best risk-hiding gambles, and at worst pure scams.
USDT doesn’t seem to be tied in volatility to bitcoin at all, and it’s not part of an investment vehicle, only for transactions—it’s not making any claims (or history) of appreciation or returns. It publishes its reserve allocation at https://tether.to/en/transparency/#reports . It’s certainly less safe that US treasuries (and presumably that funds their profit margins, which I presume are smaller than any other coin). But more convenient as transactional assistance (actual money) than most banks, for at least some things.
For your question, it seems less risky to hold USDT than almost any other crypto vehicle. But it also seems less rewarding, if held directly. The question remains “WHY is anyone holding significant amounts of USDT for very long”? My answer is “USDT itself is pretty safe, but there are a lot of exchanges offering interest on USDT on their platform”. Those platforms are mostly at best risk-hiding gambles, and at worst pure scams.