It affects you directly because:
1 - many exchanges hold Tether as a reserve and use it extensively for various transactions between the exchanges, which means that if Tether collapses they could have huge holes in their balance sheets. Some exchanges (Binance especially) could become insolvent overnight. No money in, no money out. Read up on Mt. Gox if you want to see what happened the last time an exchange went belly up.
2 - If you believe the worst allegations, then Tether is artificially propping up the value of Bitcoin. In the event of a run on Tether, Tether may be forced to sell thousands of Bitcoins abruptly onto the market to get cash.
3 - The fallout of a true worst case scenario for Tether could lead to crypto being reclassified in order to fall under all the relevant financial regulations that banks and the traditional finance sector are subject to.
2 - If you believe the worst allegations, then Tether is artificially propping up the value of Bitcoin. In the event of a run on Tether, Tether may be forced to sell thousands of Bitcoins abruptly onto the market to get cash.
3 - The fallout of a true worst case scenario for Tether could lead to crypto being reclassified in order to fall under all the relevant financial regulations that banks and the traditional finance sector are subject to.