Please note: Bitcoin is illegal & Banned in India
Before we get into Tether, let’s first understand what a stable coin is. A stable coin is a type of cryptocurrency that is tethered to a stable asset. While it is a global currency, just like cryptocurrency it is not tied to a central bank. However, it has low volatility unlike cryptocurrency.The most popular stable coin in the world right now is Tether. 100% backed by fiat currency assets, Tether’s conversion rate is 1 USDT = $1 USD. The advantage of Tether is very clear. For people who are wary of cryptocurrency given its volatility can safely invest in Tether. It is well-integrated and established. However, it misses the essence of cryptocurrency in that is centralized. Tether also refuses all audits. Tether has been a haven for people in the past but it is unclear if it can hold up in the future. There is no clarity on the reserves that Tether has and the independent audit that was canceled definitely raised some doubts. After Tether failed to provide sufficient evidence of having enough reserves, Juan M. Villaverde remarked that “Tether is the only cryptocurrency with trading volume that regularly exceeds market cap which means the entire Tether supply changes hands regularly, sometimes more than once a day. Tether is, therefore, one of the main sources of liquidity in the cryptomarkets. Liquidity is essential to keep prices stable and enable seamless trading. If this source of liquidity suddenly evaporates, the consequences could be big.
As of now, crypto enthusiasts are able to purchase Tether for USD on major exchanges and convert their bitcoin and altcoins to Tether for easy withdrawal. For instance, someone can perform a ETH to USDT exchange which in turn means that they now have the equivalent amount in USD. When someone intends to cash out, this serves them well as every other crypto coin is volatile and the value can be changed mid-transacation. With Tether, this will not happen. Tether was recently launched on the Tron blockchain. Justin Sun, CEO and founder of the Tron foundation sent out a tweet declaring a reward of 20 million $USDT for 100 days. Tron’s USP is the OMNI-USDT pairing. This will make the transfer of assets via smart contracts free, fast and transparent. It is recommended that Tether be stored off the exchange and in a Tether wallet. You can easily find the best after perusing the top Tether wallet reviews.While Tether is usually seen as the opposite of the volatile crypto market, Tether can also be compromised. It has grown tremendously since the beginning because it was the only stable coin in the market. Now there are several others like Havven, Marker Dao and Basecoin. Along with the competition, Tether’s inability to remain transparent and lack of proof regarding its reserves can make the coin lose a little bit of its value. However, experts claim that Tether is just too big to fail. Since ICOs are volatile, they rely on Tether for stability and given the gigantic market share Tether has, it will be years before it is even replaced.