How is USDT able to maintain 1:1 ratio to USD?

>connected to 1 real life USD therefore value = about 1 usd

It's a scam, they will always sell you a USDT for $1 but will never buy one. There's a price ceiling installed but the price floor is purely an illusion propped up in a similar way to fiat itself.

>>2962896
How is it connected?

>>2962915

> they will always sell you a USDT for $1 but will never buy one

That's why I'm wondering how are they able to maintain that stable 1:0 ratio if they are only selling.

>>2962916
Here's how it works.
>you buy usdt from them for 1 usd
>they create the usdt and hold the usd
>you sell usdt to them
>they give you usd
>the remove token

>>2962927

> they give you usd

That's the point. They don't.

>>2962927

Oh look it's another 17 year old kid explaining things as fact based solely off a surface interpretation of the name

That's not how it works retard

>>2962924
they don't have to buy USDT from you, because you can't exchange USD for USDT. you can only exchange your USDT back to BTC

>>2962975
not true
>>2963206
Oh look it's another basketball american trying to turn an argument into semantics because he's wrong.

You can sell them your tether for a buck brainlets.

tether is going to moon soon, better get on board

>>2963206
>directly from the white paper
Step 1 User deposits fiat currency into Tether Limited's bank account.

Step 2 Tether Limited generates and credits the user's tether account. Tethers enter circulation. Amount of
fiat currency deposited by user = amount of tethers issued to user (i.e. 10k USD deposited = 10k tetherUSD
issued).

Step 3 Users transact with tethers . The user can transfer, exchange, and store tethers via a p2p opensource, pseudoanonymous, Bitcoinbased platform.

Step 4 The user deposits tethers with Tether Limited for redemption into fiat currency.

Step 5 Tether Limited destroys the tethers and sends fiat currency to the user’s bank account.

Users can obtain tethers outside of the aforementioned process via an exchange or another individual. Once
a tether enters circulation it can be traded freely between any business or individual. For example, users can
purchase tethers from Bitfinex, with more exchanges to follow soon.

The main concept to be conveyed by the Flow of Funds diagram is that Tether Limited is the only party who
can issue tethers into circulation (create them) or take them out of circulation (destroy them). This is the
main process by which the system solvency is maintained.

Because there are BTC/USDT markets, everyone is agreeing that it should closely resemble the US dollar, therefore we all treat values in USDT like USD. They claim it's backed by a reserve, but I call bullshit on that since they don't buy them back. It simply relies on the fact that we all agree it should resemble the value of USD. We compare it to the USD/BTC markets and arbitrage bots naturally close the gaps to match the price of higher volume markets in USD. There's no magic algorithm here.