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Tether

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Description

What does Tether do?

Buying and selling cryptocurrencies for US dollars can be difficult and complicated because of strict regulations (like KYC). Tether hopes to address this problem by providing a cryptocurrency backed by the US dollar. This means that for every 1 USDT (Tether’s currency), $1 is held in reserve by the company behind Tether (Tether Limited). Because it is attached to the dollar, Tether is not highly volatile like other cryptocurrencies. 1 USDT should always be worth roughly 1 USD.

While Tether is stable (like traditional fiat money), it also provides its users the benefits of decentralized blockchain technology. In addition to being easy to move around exchanges and wallets, Tether is secured by cryptography and not subject to the risks of centralization.

What is USDT used for?

USDT is designed to be stable and easily traded between other cryptocurrencies. For example, if an individual wanted to sell BTC but intended to trade with its value in the near future, selling BTC for USDT would be quicker, easier, and more convenient than selling BTC for USD.

One of the key uses for Tether is for arbitrage between exchanges, where using bank wires or moving US dollars in other ways would be too slow. Many exchanges, such as Bitfinex, Poloniex, Bittrex, Kraken, and ShapeShift have integrated trading pairs using USDT.

How can USDT value appreciate?

In theory, Tether will never appreciate. However, the price can fluctuate by tiny amounts as other cryptocurrencies that are traded with it also fluctuate.

For example, if the price of the USD rises relative to the price of Bitcoin, USDT (a Tether cryptocurrency backed by the dollar) would rise compared to BTC.

What is the difference between Tether and its competitors?

Other blockchain projects such as Populous and BitShares offer the ability to create tokens that are pegged to fiat currencies, but Tether is by far the most popular crypto that is directly linked to the US Dollar.

Due to the fact that Tether was not designed to appreciate in value, it may not be seen as an interesting project to investors.

  • Mainnet Launch: Early 2015
  • Open Source: Yes
  • Consensus Type: Multiple (depending on blockchain used)
  • Technology: Omni and ETH
  • Total Coin Supply: 2,580,109,970
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Description

What does Tether do?

Buying and selling cryptocurrencies for US dollars can be difficult and complicated because of strict regulations (like KYC). Tether hopes to address this problem by providing a cryptocurrency backed by the US dollar. This means that for every 1 USDT (Tether’s currency), $1 is held in reserve by the company behind Tether (Tether Limited). Because it is attached to the dollar, Tether is not highly volatile like other cryptocurrencies. 1 USDT should always be worth roughly 1 USD.

While Tether is stable (like traditional fiat money), it also provides its users the benefits of decentralized blockchain technology. In addition to being easy to move around exchanges and wallets, Tether is secured by cryptography and not subject to the risks of centralization.

What is USDT used for?

USDT is designed to be stable and easily traded between other cryptocurrencies. For example, if an individual wanted to sell BTC but intended to trade with its value in the near future, selling BTC for USDT would be quicker, easier, and more convenient than selling BTC for USD.

One of the key uses for Tether is for arbitrage between exchanges, where using bank wires or moving US dollars in other ways would be too slow. Many exchanges, such as Bitfinex, Poloniex, Bittrex, Kraken, and ShapeShift have integrated trading pairs using USDT.

How can USDT value appreciate?

In theory, Tether will never appreciate. However, the price can fluctuate by tiny amounts as other cryptocurrencies that are traded with it also fluctuate.

For example, if the price of the USD rises relative to the price of Bitcoin, USDT (a Tether cryptocurrency backed by the dollar) would rise compared to BTC.

What is the difference between Tether and its competitors?

Other blockchain projects such as Populous and BitShares offer the ability to create tokens that are pegged to fiat currencies, but Tether is by far the most popular crypto that is directly linked to the US Dollar.

Due to the fact that Tether was not designed to appreciate in value, it may not be seen as an interesting project to investors.

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