Tether (USDT) is a crypto to stay glued to. Here's why
Tether (USDT) is a crypto to stay glued to. Here's why

By Bookagenius | Cryptocurrency Ish | 12 Oct 2019

$0.18 tipped


Yesterday, while taking a stroll through the environment of coinmarketcap (CMC), a particular coin caught my attention for the sixth time in a row. As at last year, precisely November 23 2018 when I first noticed it, it was at approximately $0.99. Then yesterday, I still noticed that the price of the crypto has been hovering between $0.99 and $1.00. For quite some time now; it has been always stable. The cryptocurrency in question is the tether USDT. Let’s quickly see some good pointers at the potential of this coin
Tether (USDT) (₮) is a cryptocurrency tied to different fiat currencies. USDT is tied to the US Dollar and is issued by the parent company known as Tether. The implication of this is that it allows traders to transfer in value, the “fiat equivalent” between exchanges, without the much usual need for normal fiat currency regulation(s).


MERITS OF THE TETHER (USDT) CRYPTO
1 USDT is signed to remain exactly equal to $1—not a cent more or less. Quite simply, we can say that it is basically a crypto dollar, in terms of value. Though, there have been deviations in the history of USDT cryptocurrency, but they were no more than $0.08. 
We all know that the majority of mainstream interest in crypto currencies is due to their price fluctuations, one might want to of course question the purpose of a cryptocurrency, which is the usual predictions on fixed price maintenance. No dumps, no pumps, no bubbles. Owning Tether can be likened to be like our everyday deposit in a (somewhat risky) bank account that pays 0% interest. With that been said, perhaps the question on your mind now if Tether is riskier than regular crypto currencies and provides no possibility of financial gains, why should you use it at all? Well the realistic view is that Tether is greatly useful to investors and investors and traders as a pretty much alternative to fiat. I will highlight some reasons why:


STABLE PRICE
Cryptocurrencies have a somewhat characteristic volatile nature, and in the process of and trading one volatile currency for another one might jump in deep into some great deal of complication and extra risk. That’s why a stable base currency is extremely useful. To understand why, imagine the following scenario, which involves trading Bitcoin for Ethereum:
You convert BTC to buy ETH
ETH rises by 10%. You wish to make a profit and sell your ETH for BTC.
While the trade is being processed, Bitcoin shockingly falls by 15%
Despite being correct about ETH’s direction, you would take a loss, due to the fall of BTC. By using USD₮, your sole concern is the price of Ethereum.

FEES FOR TRANSACTIONS
SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfers is quite expensive having an upward cost of $20 in fees and average around $30. Additionally, if you’re using a fiat currency other than those supported by the exchange, the banks will charge an extra foreign exchange conversion fee and percentage on the transfer. However, Tether charges zero transaction fees between Tether wallets.


To round up. Tether looks promising, however, when Compared to Bitcoin, Tether is permissioned, centralized, and trust-dependent. As a result, many crypto enthusiasts are naturally skeptical of Tether. Nonetheless, without solid evidence of misconduct, the allegations made against Tether and Bitfinex are just elements in another FUD (fear, uncertainty, doubt) campaign. While there are several valid concerns about Tether, which certainly bear noting, stories about how Tether will crash the crypto ecosystem seem overblown. But perhaps this anti-Tether campaign may achieve some good results. A critical glare might force Tether to adhere to the highest professional standards and to shore up any potential weaknesses. As a cryptocurrency agnostic, I will always stick to the golden rule and that is, if I feel that a certain cryptocurrency price, (tether inclusive) which I own is unsustainably high. My best action would be to cash out, then the next thing is to wait for a dip or crash to buy back in.


Bookagenius
Bookagenius

I am an entertainment enthusiast. A crypto/internet internet business enthusiast. A geophysicist. A songwriter. I am down to earth and I believe that everyone should be given a chance to express their talent/gift.


Cryptocurrency Ish
Cryptocurrency Ish

Cryptocurrency is the rave of the moment as far as finance, commerce and business is concerned. Everyone needs a good knowledge of the updates of the behavior of cryptos. Such knowledge is well illustrated on this blog.

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