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Be careful before choosing a Stablecoin: Here are the + and – of Tether (USDT) to help you make your choice

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

Tether price (USDT): what is the current price?

Here is the live price of Tether.

The essentials to know about Tether

Creation of the USDT crypto

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

While the tokens themselves operate on a decentralized network, Hong Kong-based Tether Ltd is fully responsible for the creation and redemption of USDT tokens, as well as the 1:1 deposit guarantee. USDT is primarily used by crypto exchanges as a substitute for fiat currencies, decreasing the frequency of customer withdrawals.

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

How does Tether work?

The main characteristic of the USD is that it is always worth one US dollar. Therefore, it is ideal for retaining or transferring value. Bitcoin, Ethereum and other major cryptocurrencies are subject to fluctuations in market supply and demand. By design, USDT is always worth a dollar.

Tether’s parent company claims to have assets equivalent to the market capitalization of USDT – over $70 billion. In other words, for every USDT in circulation, it owns one dollar of cash or liquid investment assets. According to Tether and its Cayman Islands accountants, Tether is a great alternative to dollars for many uses, including cross-border transfers and cryptocurrency exchanges without having to convert them back to dollars.

Crypto USDT: our opinion and prediction for 2022

  • USDT Global Mirror Mag Rating: 6/10

Opinion on the project

There are many doubts about the more than $75 billion held by Tether Ltd in collateral to issued USDTs. 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 Volatility Notice

The price of Tether remains stable at 1 dollar, which is an advantage for a rapid conversion of your cryptocurrencies.

Medium Term USD Price Prediction

USDT isn’t immune to a crash if it turns out Tether Ltd doesn’t actually hold the more than $70 billion in assets.

Long Term USD Price Prediction

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 its own if users try to mass withdraw their dollars traded for USDT.

Conclusion – should you invest in crypto Tether?

Tether is suffering from regulatory issues and there are several doubts about Tether Ltd which are still unresolved. In time, the USDC stablecoin of Coinbase, which is a regulated company, could overshadow it.

Useful resources for investing in Tether (USDT)

The information provided on this website should not be taken as investment advice, financial advice, trading advice or any other kind of advice and nothing on the website should be considered as such. Mirror Mag does not recommend that you buy, sell or hold cryptocurrencies.

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