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Stablecoins are just tokens which have their value pegged to "something," often a fiat currency.
You can always exchange 1 USDT for US$1, and vice versa. That's it.
"Always" only lasts as long as there's a buyer willing to pay $1. Tether has repeatedly dodged any attempt to audit them to confirm if they really can pay.
Because they would 110% fail any audit. The 2nd most blatant crypto scam behind the bitcoin block size. It's amazing how dumb these buyers can be.
We know USDT doesn't actually hold a dollar for a dollar. Assuming they even pass an audit, it includes things such as but maybe not specifically real estate that don't have relatively fixed values.
AFAIK usdc is actually better pegged. Dollars, bonds etc.
The only buyer you need for USDC would be circle or coinbase, you don't need anyone else.
Edit: I don't know what the status of the reserves would be should they go bankrupt though. E.g would a non usdc holder have any claim over the billions in usdc in a bankruptcy proceeding.
Why would anyone buy thether as it will absolutely lose value year on year as the dollar loses value?
They're called "Stablecoins", what could go wrong?
Stablegeniuscoins.
Please learn what stablecoins are actually used for so you don't look as uninformed as you apparently are when replying to topics you apparently know nothing about.
You don't buy Tether as an investment, you buy it to enable you to more easily trade into other stuff.
Many non-US exchanges can't trade in actual dollars, because they don't meet the proper regulations to be connected to the US banking system. But since these Tethers exist, they can trade USDT, and pretend they represent actual dollars.
If you want to trade from one obscure shitcoin to another, that trading pair doesn't exist. But odds are good that both coins are traded with USDT, so you can do the trade in two transactions by going through USDT first.
We don't really know whether Tether is fully backed, though. As long as they meet their redemptions when people ask for USD in exchange for tether, it may not really matter. I suspect the biggest holders are exchanges, who will never redeem their tether for USD because they need to keep it in USDT for their trade liquidity.