Betting against tether is not only betting against the long term growth of crypto currencies increasing in value, it is betting that regulatory overhang will drag the value of tether down from its supposed dollar peg.
We can and should imagine a bank holiday is possible where you cannot spend or withdraw from a bank. This is the possible scenario with Tether, the tether token contract can be locked for any address, this includes exchanges. An asset that is illiquid, may function as a line item in a ledger, and if it cannot be traded or moved the market will vanish. The chaos this would cause would be devastating.
We can and should imagine a bank holiday is possible where you cannot spend or withdraw from a bank. This is the possible scenario with Tether, the tether token contract can be locked for any address, this includes exchanges. An asset that is illiquid, may function as a line item in a ledger, and if it cannot be traded or moved the market will vanish. The chaos this would cause would be devastating.