The most stable and, at the same time, the most controversial cryptocurrency, Tether, has almost an equal number of supporters and opponents. The digital asset aligned with the United States dollar has become a real salvation for traders, providing a fast and cheap alternative to fiat money, and has expanded the possibilities of cryptocurrency exchanges, freeing from the need to cooperate with regulators when using traditional currency. A hybrid currency that combines the best qualities of digital assets and is backed by a fiat equivalent at an equal 1: 1 ratio has actually made it possible to digitize the dollar. At the same time, critics do not cease to publicly doubt the sufficient supply of tokens and accuse Tether of artificially forcing the rise in prices for Bitcoin.
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How it started
The hybrid cryptocurrency, which appeared in July 2014, was originally named Realcoin. The project was the first practical implementation of the idea of combining traditional financial markets and the rapidly developing blockchain technology.
In early 2015, the cryptocurrency was renamed Tether (USDT), and exchanges were released. For the first time, Tether technology was used by Bitfinex to improve the efficiency of cryptocurrency trading for traders. In the same year, the asset was listed at the Poloniex exchange.
How it’s holding up
Since its inception, the Tether cryptocurrency has shown high demand among users, and especially traders, functioning as a buffer between digital and traditional money. As of the end of November 2020, the coin is ranked 4th on the world cryptocurrency rating compiled by the analytical resource CoinMarketCap, characterized by a market capitalization of $18 997 155 391 USD and daily trading volumes of $114 255 345 650 USD. The fixed rate of USDT is almost always equal to $1 with small deviations.
The total number of coins issued is 19 433 536 999 with 18 957 655 237 USDT tokens in circulation.
One of the main strengths of Tether is the support of the hybrid currency by European and American financial institutions. The USDT ecosystem has made it much easier to digitize the dollar by significantly expanding its functionality.
How it rubs everyone in the face
Here are some of the main benefits of this asset recognized by many:
- security of transactions provided by the basic elements of blockchain technology;
- ease of use, providing ample opportunities for traders and stock exchanges;
- high speed of transactions, which allows users to transfer fiat funds faster and cheaper than bank payments;
- stability due to the provision of cryptocurrency with traditional cash reserves;
- transparency, confirmed by regular audits of the compliance of users’ balance accounts and the availability of funds in the company’s bank accounts;
- low commission fees for transactions;
- prevalence – allowing the use of Tether coins by most cryptocurrency and traditional platforms;
- it has its own cryptocurrency wallet with an extended list of options and is one of the most user-friendly applications for storing and operating digital currencies.
As you can see, Tether is innovative and just fascinating!
How it’s gonna go
The founder of Binance, Changpeng Zhao, discussed the prospects for Tether (USDT) at the Korea Blockchain Week.
Due to the fact that Binance is one of the largest holders of this cryptocurrency, journalists asked Zhao to predict the likely losses that await the platform if Tether falls. The entrepreneur said that, although the current state of affairs has its risks, the same can be expected when other digital currencies fall.
In addition, he emphasized the fact that collapses have occurred in the history of the conventional currency market. The head of Binance noted that humanity has already encountered many similar cases. At the same time, he added that there is certainly some degree of concern; therefore, other types of coins are added to the platform, distinguished by stability, such as TUSD.