Be careful before choosing a Stablecoin: here is the + and – sign for Tether (USDT) to help you make your choice

Tether is a stablecoin, i.e. a cryptocurrency whose value is tied to the value of a fiat currency such as the dollar or the euro. Each Tether token must be specifically marked with the value of one unit of fiat currency at all times. Tether is specifically linked to the US dollar. This virtual currency thus allows you to install your crypto assets without having to resell them.

Rope Price (USDT): What is the current price?

This is the live price for Tether.

The basics you need to know about Tether

Create USDT Crypto

Tether (USDT), formerly known as “Real Coin”, is a cryptocurrency that aims to maintain a fixed 1:1 exchange rate with the US dollar. It was founded in July 2014 by Brock Pierce, Craig Sellars, and Reeve Collins. Created on top of Mastercoin (Omni), a protocol layer for Bitcoin that introduced the idea of ​​a stablecoin to the public in 2012, Tether was one of the first stablecoins created and is now the most traded one.

While the tokens themselves operate on a decentralized network, Hong Kong-based Tether Ltd is fully responsible for generating and redeeming USDT tokens, as well as guaranteeing a 1:1 deposit. USDT is primarily used by cryptocurrency exchanges as an alternative to fiat currencies, reducing the frequency Customer withdrawals.

Tether Ltd, a Hong Kong-based USDT issuer, has a close relationship with Bitfinex, as both are owned by the same parent company, iFinex Inc.

How does Tether work?

The main feature of the US dollar is that it is always equal to one US dollar. Therefore, it is ideal for value retention or transfer. Bitcoin, Ethereum and other major cryptocurrencies are subject to fluctuations in market supply and demand. By design, USDT is always equal to $1.

The parent company of Tether claims to have assets equal to the market value of USDT – more than $70 billion. In other words, for every USDT traded, he owns one dollar of cash or liquid investment assets. According to Tether and its accountants in the Cayman Islands, Tether is a great alternative to dollars for many uses, including cross-border transfers and cryptocurrency exchange without having to convert them back into dollars.

Crypto USDT: Our opinion and predictions for 2022

  • USDT Global Mirror Mag Rating: 6/10

Opinion on the project

There are many doubts about the more than $75 billion that Tether Ltd holds as collateral for its issued USDT funds. The company remains opaque and fails to reassure market regulators. We are not immune to a large-scale scandal with this cryptocurrency and Tether Ltd.

Price Fluctuation Notice

The price of Tether remains stable at $1, which is an advantage for quick transfer of your cryptocurrency.

Forecast the price of the US dollar in the medium term

USDT is not immune to a crash if it turns out that Tether Ltd does not actually own more than $70 billion in assets.

Long-term dollar forecast

As long as Tether Ltd keeps its finances unclear, owning Tether will remain risky. We don’t know if the company will be able to hold on its own if users try to withdraw their USDT dollars en masse.

Conclusion – Should you invest in Crypto Tether?

Tether has regulatory issues and there are many uncertainties about Tether Ltd that have yet to be resolved. Over time, the USDC stablecoin of Coinbase, which is a regulated company, could be overshadowed by it.

Useful Resources for Investing in Tether (USDT)

The information provided on this website should not be considered investment advice, financial advice, trading advice or any other type of advice and nothing on this website should be considered as such. Mirror Mag does not recommend buying, selling, or holding cryptocurrencies.

Be vigilant and consult your financial advisor before making any investment decision. The display of advertisements and hyperlinks from third parties on Miroir Mag does not in any way imply endorsement, warranty or recommendation of Miroir Mag. Before using any third-party service, you should do your own research. Mirror Mag will likely receive compensation through affiliate links.

Leave a Reply

Your email address will not be published.