Why did Tether become the “big favorite” of stablecoins?

The digital currency whose value is a reflection of the march of the US dollar is getting more and more followers every day. The motives

The digital currency Tether is one of the best known stablecoins, both for the value it promotes and for the possibility of investing, but it is also usually the axis of controversy that it generates outside and within the crypto ecosystem.

One USDT it will always have a value equal to or close to one US dollar. Its name comes from the union of the dollar symbol with the letter T of Tether.

Tether

However, Tether was created beyond that value and has an entire ecosystem behind it that allows it to evolve. However, despite these virtues, there are several aspects that raise doubts about value:

  • Inconsistency in your audits
  • Bank in Taiwan
  • Instant currency issues
  • A strongly suspicious anonymity
  • Unfavorable reports
  • Hugely bloated trading volumes tripling the coin capitalization

His creation

The creation of USDT began to take shape in 2014 with an idea from JR Willet, known in the world of cryptocurrencies as “The man who created ICOs”.

In 2014, Willet worked at Mastercoin, a blockchain that served as a communications protocol running on Bitcoin, which was quite a revolution for Bitcoin and opened the doors for new applications and features.

In the development of Mastercoin, they were Brock Pierce y Craig Sellars, who in the same year launched Realcoin using the Omni Layer protocol. The appearance of Realcoin would be one of the biggest projects carried out on Omni at that time.

However, on November 20, 2014, the CEO de Tether, Reeve Collins, announced the name change to be called Tether, as it is known today.

The intention behind Tether is that it can be used as “digital dollar” Since it is based on the United States dollar (USD), so the value of a Tether coin will also correspond to the exchange rate of one dollar.

Advantages of using Tether

USDT has the advantages of cryptocurrencies: it does not establish limits for its transfers and it can be sent anywhere in the world quickly and at a low cost per transaction. It is stable: this is because its value is tied to the value of the dollar.

It is possible to know its value at all times: being directly anchored to the dollar it is possible to know its real value at all times. If you want to Invest in Tether, it only requires a few simple steps:

  • The user deposits a certain amount of dollars in the bank account of the company Tether Limited
  • Tether Limited generates and credits USDT tokens to the user’s account. These are created in a 1: 1 ratio with respect to the deposit made
  • USDT funds are activated to be used like any cryptocurrency
  • To exchange your USDT tokens for US dollars, you must deposit them in the accounts of Tether Limited
  • Tether Limited destroys USDT tokens and sends fiat currency to user’s bank account
  • To handle the transactions you need a digital or physical wallet as with any other cryptocurrency.

Tether conducive to investing

Tether conducive to investing

Like all cryptocurrencies, you have its advantages and disadvantages:

  • Advantages: Stable price, cheap transactions, integrable and offers protection to traders’ funds
  • Disadvantages: There are doubts about the true support to maintain parity, they have been used in gray operations in the market, the issuing company has many contradictions, it is not anonymous, it is not decentralized due to the total control over its value by Tether and not there is verifiable information about its implementation

This year, the total market capitalization of stablecoins like Tether (USDT) has skyrocketed significantly, from about $ 37 billion in January to $ 123 billion at the beginning of September.

Therefore, in recent times, the adoption of these stable crypto assets has become increasingly popular and they are positioned as the most attractive investment alternatives.

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Why did Tether become the “big favorite” of stablecoins?

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