I guess I'm asking is how is bitcoin, the token, being used to transmit data that can be interpreted to constitute USDT on whatever platform that data is being interpreted. To that end, if the quantity of the btc token being transmitted change in value significantly, won't that impair the stability of the USDT value denominated in USD?
Discussion
No because the USDT token isn't tied to the bitcoin itself. It's just using the network to transmit and store the data needed to change its ownership. Similar to how ordinal NFTs/shitcoins are doing it.
I'll have to explore it more. It's true though that to send the USDT from ony person to another it would require either a lightning transaction or an onchain transaction right? Even if those transactions are small?