Without reading tethers whitepaper, understanding how they "print" tether or understanding their business model I have some questions which are not answered in your video @cryptovestor.
Let's say the backed the first 100 USDT with a 100 USD bill and exchanged it to a fraction of a bitcoin worth 100 USD. Let's say the USD/BTC exchange rate was 1000 USD at this time. What would you do to keep the value of 1 USDT stable if the price rise up to 10k?
I mean if you are Tether you still have 100 USD backing your tether value plus you have a fraction of a BTC which is now worth 10 times more then it was when you exchanged it.
Well now you could exchange your BTC to USD your 100 USDT would be backed by 1100 USD.
To keep the balance you would probably print 1000 USDT and toss them on the marked, wouldn't you?