Netizens are looking forward to seeing how Tether can bring out the best of both traditional currencies and digital currencies. One long standing notion regarding cryptocurrencies is that it cannot be reconciled with fiat currencies—an idea that Tether is set on disproving.
Netizens around the world have recently set sights on a digital currency named Tether. Launched in 2014, this recent addition to the Bitcasino gaming platform and the fourth most powerful cryptocurrency on the global market at the time of writing, is quickly gaining widespread acceptance due to its distinct approach.
As a cryptocurrency, Tether deviates from the norm in two main ways:
- It is classified as a stable coin
- It is supported by a recognized world currency.
Stable coins, as found in the name, refer to cryptocurrencies that experience markedly less volatility when it comes to their value. This is because stable coins are attached to a fixed price or pegged to a fiat currency, while other crypto coins are subject to the whims of the market.
Since most cryptocurrencies are known for their erratic ups and downs, Tether offers a fresh perspective on what people can achieve with digital currencies.
Tether is backed by the United States Dollar and there is more planned for the digital currency; network branch-offs to Japan and certain countries in Europe are a part of its future plans, but nothing is set in stone just yet.
This crossover between crypto and fiat currencies plays a large part behind Tether’s popularity. Its alignment to one of the strongest economies in the world provides a sense of reassurance and confidence in its capabilities. In addition, the US financial system has managed to establish Tether as a solution to liquidity, a legitimate mode of storage, and a reliable medium of exchange.
For the Tethers 1:1 ratio with the US Dollar to work, the developers behind the USDT project hold assets of equal value to the cryptocoin in reserve.
Hopes are high for Tether USDT to improve stability and transparency in financial transactions, while simultaneously lowering the costs of these activities. In a nutshell, many are looking forward to using Tether USDT and enjoying the benefits of both a traditional currency and open blockchain technology.