We all know how volatile Bitcoin is.
It can either be very exciting or very dramatic, depending on which way the price goes.
What about the people who want something more stable?
A cryptocurrency that can be used almost exactly the way fiat money is used.
Well, I’m here to tell you that there is an option!
What’s up cryptopeeps? It’s your girl Maria here to deliver your daily dose of crypto news!
Today, we’re gonna be talking about Tether or USDT.
Tether is a type of stablecoin which aims to be a bridge between fiat currencies and cryptocurrencies.
But before we go any further, let’s first discuss what a stablecoin is.
Stablecoins aim to be exactly what they’re called—stable coins.
They are designed to be less volatile and have a stable price.
Compared to the wide swings that Bitcoin and Ethereum experience, stablecoins hope to keep their value steady and consistent.
In most cases, they’re usually “pegged” to something—fiat money, another cryptocurrency, or even exchange-traded commodities.
This basically means that they operate under a fixed exchange rate system.
Tether is the most popular among all the stablecoins.
It was launched in November 2014 and had three co-founders:
Brock Pierce, the director of the Bitcoin Foundation,
Craig Sellars, a software engineer,
and Reeve Collins, an entrepreneur.
Together, they formed a simple premise for a cryptocurrency: to provide a token that represented a fiat currency at a 1:1 ratio.
They also hoped to combine it with the cross-border payments facilitated by blockchain technology.
To develop the crypto, they used an OmniLayer platform—a fully decentralized platform that’s built on top of the Bitcoin blockchain.
Since that launch in 2014, the popularity of Tether started to grow.
It even reached its all-time high in transactions on *March 31, 2019.
On that day, a total number of 38,150 transactions were recorded.
The reason why they’re so popular is that many traders actually use Tether as a substitute for dollars.
Tether is easier to transfer between cryptocurrency exchanges and other platforms,
and it doesn’t go through the banking system which makes it appealing for the unbanked population.
Tether is extremely easy to buy and sell.
Because of its popularity, you’ll probably be able to find exchanges that specialize in dealing with Tether.
If you’re more into peer-to-peer marketplaces, Tether is also a common payment method.
Despite all the possible pros of Tether, a lot of people remain skeptical about the stablecoin.
Right now, people are unsure if it’s actually backed by dollars.
The company hasn’t provided any conclusive evidence of its holdings.
People claimed that Tether was used to artificially inflate the price of Bitcoin.
There was an unofficial audit done on Tether, however, a lot of people question its legitimacy and credibility.
Nevertheless, Tether remains in the top 10 of all cryptocurrencies with a market cap of over $4 million.
Despite it sitting steady at that $1:1 USDT ratio,
there have been times in the past where it went higher or lower than that $1 mark.
What do you think about Tether?
What’s your stance on its legitimacy?
Let us know in the comments section down below!
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