Tether cryptocurrency is the most demanded stablecoin today. Based on the blockchain, the Tether platform transfers fiat money to electronic money, exchanging traditional dollars for USDT digital coins and pegging them to the exchange rate of national currencies.
Bitcoin showed promise to become a fast, convenient and secure means of payment. By the end of 2017, it became clear that in the form in which cryptocurrency is now, it is impossible to implement this. Probably, for this, the Bitfinex exchange, together with the company issuing the “tokenized” dollar, the stablecoin Tether, known as USDT, took advantage of it.
Stablecoins are cryptocurrencies with a fixed rate or resistance to significant fluctuations. This class of digital assets is characterized by low exchange rate volatility or its complete absence. Thus, in addition to the function of exchange, stablecoins act as an effective unit of account and a store of value.
Tether is a cryptocurrency that uses the blockchains of various cryptocurrency platforms for financial transactions and is pegged to fiat currencies, in particular the US dollar. The company Tether Limited issues tokens, assuring that each of them is backed by a real reserve on the accounts, and this way one million tokens in circulation is strictly equal to one million units of fiat currency on the company’s accounts.
Tether is still a dark horse for most users. Surely, you have seen this token on popular exchanges and heard something about it. The main activities of the cryptocurrency industry take place around the top coins. The rate of Bitcoin or other popular currencies is formed due to the mass hype and major market players.
Currencies such as Tether (USDT) are more likely to play the role of an intermediary and are used to ride out a period of particularly high volatility in other cryptocurrencies.