Tether (USDT) has been one of the most popular and controversial cryptocurrencies since its launch. In this guide, we will explore Tether in more depth to understand what it is, how it works, and its projections for the crypto market in 2024.
What Is Tether (USDT)?
Tether (USDT) is a stablecoin introduced in 2014.
The founder of Tether is the company Tether Limited, which founded the cryptocurrency in 2014. The company is based in Hong Kong and is led by Brock Pierce, Reeve Collins, and Craig Sellars.
As a stablecoin , Tether's primary goal is to provide value stability by being pegged to fiat currency , specifically the US dollar.
This means that each Tether unit is supposed to be backed up by one US dollar held in reserve.
Tether is often used in crypto trading as an alternative to converting to traditional fiat currency when traders want to reduce exposure to market volatility.
Why was Tether (USDT) created?
Tether's main goal is to provide a simple, fast, and reliable means to carry out transactions in the crypto asset market .
As a stablecoin, Tether (USDT) is not susceptible to price fluctuations, because the value of Tether always remains stable. In other words, 1 USDT is equivalent to 1 USD.
Tether functions as a means of exchange like traditional fiat currency and can be used as a means to hedge against price changes in the market, especially when prices decline.
Besides, USDT has a wide range of applications. For example, USDT can be leveraged in the decentralized finance (DeFi) ecosystem as collateral for loans or as a stable asset within a liquidity pool.
Additionally, Tether (USDT) is also widely used in the Web 3.0 context , especially in the purchase of non-fungible tokens ( NFT ).
In summary, Tether acts as a safe haven and a tool for diversifying investments.
How Does Tether Work?
Tether works in a fairly simple way. Every time someone buys Tether from Tether Limited or a crypto exchange, they are giving US dollars or other fiat currency to the company.
Tether Limited then issues an equivalent amount of Tether and holds those US dollars in reserve.
This kind of process should ensure that the value of each Tether is equivalent to one US dollar.
However, it is important to note that this claim has raised controversy and questions about whether Tether is truly fully backed by dollar reserves as announced.
Controversy and Criticism of Tether
Since its launch, Tether has been the subject of ongoing controversy and criticism.
One of the main criticisms of Tether is that its claims of full backing of the US dollar have never been independently audited.
The lawsuit has led to speculation that Tether may not have enough reserves to guarantee the value of each Tether.
Additionally, Tether Limited has been accused of creating additional Tether without appropriate reserves, which could lead to uncontrolled inflation in the supply of Tether and impact the crypto market as a whole.
Also Read: Tether USDT Accused of being a Money Laundering Tool in Southeast Asia
Considerations for Using Tether (USDT)
Despite the controversy surrounding Tether, this stablecoin has had a significant impact on the crypto market.
Due to its stability against fiat currencies, Tether is often used as an alternative to converting to US dollars or other fiat currencies when traders want to exit crypto positions.
This has made Tether one of the most popular stablecoins in the crypto market and often the main choice for traders to trade or store value outside of crypto volatility.
For more complete considerations regarding the use of Tether (usdt), these are as follows:
1. Value Stability
One of the main reasons to use Tether is the stability of its value. Tether (USDT) is designed to be held in fiat currency, primarily the United States dollar (USD).
This makes it more stable than some other cryptocurrencies that are known for their high price volatility.
By using Tether, users can minimize the risk of significant price fluctuations that often occur in the crypto market.
2. Transaction Speed
Transactions using Tether (USDT) are usually faster than transactions involving traditional fiat currencies.
This speed is supported because the blockchain infrastructure used by Tether allows direct transfer of assets between e-wallets, without the need to go through financial institutions or complicated supervisory procedures.
Thus allowing users to quickly and efficiently move in and out of crypto positions.
3. Ease of Use
Tether (USDT) can be used in a similar way to traditional fiat currency.
This concept allows users to easily use Tether in a variety of activities, including trading, investing, payments, and fund transfers.
In addition, Tether allows users to quickly and efficiently convert other cryptocurrencies to fiat currency without having to use traditional banking services.
4. Liquidity
Tether (USDT) is one of the most liquid stablecoins in the crypto market. This means that Tether is easy to trade on various crypto exchanges and has a high trading volume.
The existence of high liquidity makes it easier for users to buy and sell Tether at a fair price and with low transaction costs.
5. Access to Crypto Markets
Tether (USDT) is often used as a currency trading pair on various crypto exchanges.
This allows users to easily access and participate in diverse crypto trading without the need to use traditional fiat currencies.
By using Tether as a means of payment, users can easily trade in various crypto pairs without having to convert fiat currency.
6. Access to DeFi and Decentralized Financial Products
Tether (USDT) is also used as a means of payment and liquidity in various decentralized finance (DeFi) protocols.
This allows users to access a variety of decentralized financial products and services, such as lending, exchange, and storage, without having to use traditional fiat currency.
Also Read: Tether Denies UN Accusations Regarding USDT
Tether (USDT) Price on Bittime Market
Image source: Bittime.com
According to monitoring of Tether (USDT) movements on Bittime Trade , currently, the USDT position is at the level of IDR 15,654.
The highest point for USDT is at IDR 15,680 while the lowest point is at 15,605. The distance that is not so far apart indicates that USDT can be said to be quite stable
If you refer to the Bittime Trade graphic data above, in 2024, Tether will continue to act as one of the main stablecoins in the crypto market.
However, concerns about the validity of its stability claims remain, and regulators continue to look closely at Tether's role in the crypto ecosystem.
It is expected that Tether and other companies issuing stablecoins will face further pressure to conduct transparent audits of their claimed reserves.
Conclusion
Tether (USDT) has been an integral part of the crypto ecosystem since its launch. Although its claim to be a stablecoin fully backed by US dollars has caused controversy, Tether remains one of the most popular stablecoins in the crypto market.
However, with the continued development of the crypto ecosystem and increasing regulatory attention, the future of Tether and other stablecoins remains uncertain.
As an investor, it is important to understand the risks associated with using Tether and conduct careful research before making an investment decision.
How to Buy Tether (USDT) on Bittime
You can buy and sell USDT in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Tether (USDT) is available on Bittime with USDT/IDR pairing. To be able to buy USDT/IDR coins on Bittime, make sure you have registered and completed identity verification.
Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet.
For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, you can purchase Tether (USDT) in the application.
Click to find out the complete guide to buying USDT on Bittime.
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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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