What is Usdt?
tether is one of the stable coins out in the cryptocurrency industry right almost next to bitcoin today we will discuss tether , what is tether cryptocurrency usdt? will usdt always be stable?.
Tether is a stable coin that is backed by the US dollar that means that one usdt is supposed to be worth one dollar and most of the time it is however prices have changed in the past stable coins are useful for people who want to hold a digital currency that has a stable value and is backed by an asset ,this is why tether is so popular but it is also one of the most controversial stable coins in this article we'll cover that and everything else you need to know about tether ,
tether is a stable coin though you may have seen how much different cryptocurrencies are worth the most valuable is a Bitcoin a few things like ethereum are also expensive on the other hand there are crypto coins that don't have a decimal place the market is usually unstable with jumps and drops that come as a surprise in the middle of all the noise and Chaos a stable coin is supposed to stay stable by always being worth one US dollar so in terms of money a stable coin is the same as a fiat currency try to guess how much one tether is worth right now, yes an American dollar so a tether can also be written as "usdt" which stands for US dollar tether on crypto exchanges you can also buy and sell other stable coins some of the best known are binance USD USD coin ,USDC, like all other cryptocurrencies tethered is still in its early stages.
who created tether?
In 2014 it was announced that tether would be a stable coin equal to Fiat money crypto is meant to shake up the traditional Financial system through new technology at first the coin was called a real coin Brock Pierce Craig Sellers and Reeve Collins started tether it was made to solve two important problems with other cryptocurrencies their volatility and their inability to be changed into other currencies as was already said the prices of cryptocurrencies change a lot and it's not easy to turn a digital one Into Cash the token is made by tether LTD an iPhone x Inc based in Hong Kong tether has also had its share of problems its earlier claim that the US dollar backed it at a ratio of one to one was questioned and it was eventually sued the lawyer for tether said that only 75 percent of the cryptocurrency was backed by anything but the case was settled in a friendly way this settlement says that tether cannot be offered for business in New York but tether later said that it was always backed by the USD which was not true ,how does tether work when a user puts fiat currency into tether's Reserve by selling Fiat to buy usdt tether gives out the same amount of tokens in digital form after that the usdt can be sent saved or traded ,If a user puts one hundred dollars into the tether Reserve they will get 100 tether tokens because each token is worth one dollar when users exchange tether coins for regular currency the tokens are destroyed and taken out of circulation like many other digital currencies tether moves across blockchains there are tether tokens on many blockchains such as the original one with Omni on the Bitcoin platform and liquid ethereum eth and Tron TRX among others
will usdt always be stable?
Stable coins are what tether is tether wants to offer a digital asset that is safe and has a stable value usdc is a stable coin because its price is tied to the price of the US dollar the goal is for the value of tether to always be the same as its Peg USD coin usdc die Dai and Pax dollar usdp to name a few are stable coins that compete with tether crypto Traders use tether to get steady reliable liquidity so they can buy and sell other cryptocurrencies without losing or making money they can't predict because the prices of those other cryptocurrencies are so volatile in the past 89 billion dollar worth of tether changed hands in just one day that makes tether the most liquid cryptocurrency even more so than Bitcoin and ethereum which have been around longer it's also one of the three biggest cryptos in market capitalization is tether a good investment tether is not an investment because its price is set to stay at one dollar like other cryptocurrencies and crypto stocks the value won't go up as was already written you could use tether to make money without doing anything there are many places where you can lend your tether and get competitive interest rates ,It's one way to earn more interest than a regular savings account remember that this is not risk-free in any way your tether is not insured or guaranteed like money in a bank account even though the price of tether has stayed chiefly at one dollar that could change in the future.
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