5 min read
Do you know that Tether USDT has a market cap known to be over $30 billion? Well, this market cap is now on the rise after Coinbase listed Tether USDT on 3rd May 2021.
This article will look at Tether cryptocurrency, and why it’s recently on the rise. We will also look at why people are using it and how they are using this cryptocurrency.
Tether (USTD) is a cryptocurrency issued by Tether Limited with a value used to mirror the value of the fiat currencies. The idea of Tether (USTD) was to create a stable cryptocurrency that is ultimately used as a digital dollar. Tether(USTD) is a cryptocurrency token tethered to the US dollar, so 1 Tether (USDT) is equivalent to 1 US dollar (USD).
How are People Using Tether Cryptocurrency?
Before we look at how people worldwide are using this crypto, it would be best to note that Coinbase is only supporting ERC-20 USCT, which is currently running via the Ethereum blockchain.
The Tether token helps traders reap the benefits of maintaining a stable price from paper currency while exploiting the advantages of a cryptocurrency. It is also useful for many cryptocurrency exchanges that have difficulty working with banks.
Tether token provides a good speculative hedge for buyers just in case a bearish turn in the main crypto market occurs. It also allows investors to fall back to a stable reserve asset if they choose to leave it in there. This also allows them to move from one currency to another freely.
Why Are People Getting Drawn To Tether Cryptocurrency
Nowadays, Tether is a popular cryptocurrency in the crypto market. Numerous reasons are drawing people toward this currency that is considered the world's top 15 cryptocurrencies. It proves its popularity through the following advantages, some of which are being pushed by its recent coinbase listing:
1. The Tether token is almost "No Market Fear.”
Cryptocurrency is quite an uncertain industry as you have heard people having fears of investing. Anything is indeed possible, and you have to be careful while investing your money in the industry. However, For Tether users, they do not need to worry about the aggressive crypto market situation. The value of the tether token is fixed and does not change no matter what happens in the market.
2. Exceptional customer service.
Tether Limited has a reasonable and excellent customer care service running 24/7 but only in the English language, and you have to pay a small fee. However, if you are looking to transfer coins from one tether wallet to another, the service is free.
3. It is a fiat currency.
Since you can use it in electronic form, users can buy or sell as many times as they choose without any liquidity concerns.
4. It exists on the ethereum blockchain.
On the ethereum blockchain, Tether usually exists as an ERC20 token, a well-developed blockchain that is open-sourced and very much decentralized. This means Tether can be used to transfer money to anyone across a network at a cheaper and faster rate.
5. It is secure and reliable.
You do not have to worry about security while using Tether because it works on the blockchain network, making it the most secure system. While buying or selling on the network, you do not need to have security concerns since the company adheres to the KYC and AML guidelines, solidifying its security.
What Are Some of the Recent Complains About Tether (USDT) Cryptocurrency
As much as cryptocurrency has great pros, we also have to acknowledge the cons.
1. As much as the network holds the anonymity feature, New entrants have to provide several documents to confirm their identity before opening an account.
2. The Tether may be decentralized, but the company's currency reserves are completely centralized. Centralized means that their entire tether system is fully dependent on Tether Limited's capability to maintain the currency tether.
3. Tether is usually reliant on the banks they work with and the legal institutions they are connected to the company.
A stable coin in itself aims to achieve a safe blockchain ecosystem. At the moment, many new entrants cannot afford to buy this Tether as a reserve and then use them later because the price is stable to the dollar.