Yahoo Finance said:Famed economist Nouriel Roubini says ...
Roubini noted that there’s academic research to suggest that “this pseudo stable coin Tether has been created by fiat” and is “used literally to manipulate the price of Bitcoin.”
Can anyone explain how this works in practice?
The theory is that behind every Tether there is $1. I don't think that anyone believes this.
So they issue a billion dollars of Tether and use it to buy Bitcoin and push up the price.
But someone who sells their Bitcoin presumably doesn't want Tether, they want real dollars.
Or, are the transactions completely artificial? They open an account with an exchange and lodge Tether in it. Then they open another account with Bitcoin. And swap them at inflated prices?