Here, we'll take a deep look into the Tether (USDT) cryptocurrency. We’ll examine the origins, track record, and usability of this popular cryptocurrency. The crypto market dips that we have experienced lately have made it clear that the need for options to reduce exposure to market fluctuations on the crypto exchanges is real. The question becomes, how reliable are the options available today. Let's dive in a take a closer look at Tether.
What is the Tether Cryptocurrency?
Tether is currently the most popular crypto that is anchored to the U.S dollar’s value. As you may already know, the price of Tether is fixed to the price on the U.S dollar at a 1:1 ration. This allows cryptocurrency investors to store value without the risk of market fluctuations.
Tether was Founded in November of 2015 by Philip G. Potter and Giancarlo Devasini. Since then Tether has seen its market cap grow from $250,000 at its start, to around $1.6 billion today with no signs of slowing. Tether is closely tied to the Bitfenix cryptocurrency exchange, but is now available on nearly all cryptocurrency exchanges used today.
Is Tether Cryptocurrency Safe?
Some are skeptical of Tether due to, what some believe is, a lack of transparency. In November of 2017, leaked documents, known as the Paradise Papers, revealed some previously unknown facts about the origins of Tether. According to the documents that were leaked, Tether was incorporated in the British Virgin Islands. Some believe this was done for liability and tax protection purposes.
Tether has faced questions from critics aimed at its solvency. For example, if we see a major dip in the crypto markets, could Tether really back each of its USDT coins with U.S Dollars? This is a question that many critics have asked.
To help answer this and other questions, Tether released an accounting document that was meant to put the public at ease. A New York Times lawyer, Lewis Cohen, has pointed out that the accounting document released by Tether may be carefully worded as to not clearly state that each USDT coin is backed by $1.
Is Tether Cryptocurrency Useful?
The usefulness of Tether is clear, but it is important to also take into account the risks of using this crypto as a store of value. Some have even argued that the downfall of Tether could lead to a crash in the crypto markets as whole. If those concerns are warranted, or are simply overreactions has not yet been seen.
What is clear, is that it's always a good Idea to reduce risk where possible. Only you can decide how much risk you are willing to expose yourself to in return for the advantages that using Tether provides.
What to you think about Tether?
Are you currently holding Tether to store value on or off the exchanges? Are you concerned with any of the issue exposed by the Paradise Papers? Do you think that there is a better and/or safer way to get the same service that Tether provides? Please share you thoughts in the comments below.
Social Media:
Facebook: https://www.facebook.com/davidhay.org/
Twitter: https://twitter.com/DavidHaydotorg
Reddit: https://www.reddit.com/r/DavidHay
YouTube: https://www.youtube.com/user/DavidHaydotOrg/