What is USDT? The Stablecoin that Dominates Despite Full of Controversy

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Bittime -The crypto world is synonymous with volatility . The value of crypto assets can fluctuate wildly in the blink of an eye, making investing in them high risk. However, amidst this turmoil, a ray of stability emerged: USDT.

What is USDT? 

USDT or Tether USD is a stablecoin. In contrast to other crypto assets whose prices fluctuate, stablecoins are pegged (linked) to the value of another stable asset, in this case the US dollar (USD). In other words, 1 USDT should always be worth around US$1, providing a “safe harbor” for investors who want to avoid the wild volatility of crypto assets.

Taking a Look at the Heart of USDT

Tether, the company behind USDT, claims that it has cash reserves or other liquid assets worth all the USDT in circulation. These reserves serve as collateral, ensuring that at any time, USDT can be exchanged back into USD at the same value. However, Tether's transparency about reserves is one source of controversy.

USDT Domination: The Giant Who Dominates

USDT has transformed into the world's leading stablecoin . Its market capitalization of US$98 billion even surpasses several banks and other established financial companies. Its popularity is driven by several factors:

• Stability: Amidst the frenzy of crypto volatility, USDT offers “fresh water” in the form of stability. This makes it an attractive option for investors who want to avoid adverse price fluctuations.
• Ease and Speed ​​of Transactions: USDT can be easily transferred globally with low and fast fees. This makes it a much more efficient option compared to slow and expensive international bank transfers.
• Important Role in DeFi: USDT is widely used in decentralized finance ( DeFi ) , an innovative financial ecosystem that allows users to lend, borrow, and trade crypto assets without intermediaries. DeFi requires stable assets, and USDT meets that need.

USDT Controversy: A Shadow of Doubt

However, behind its success, USDT is also not free from controversy. Critics question Tether's transparency about their reserves. They accused Tether of not having enough reserves to support all USDT in circulation, raising concerns that USDT could lose its 1:1 peg with USD.

Additionally, USDT's decentralized nature also raises other concerns. Critics worry that USDT is being used for illegal activities due to its difficult to trace nature.

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USDT Price: Stable Amid Maelstrom of Controversy

Source: Bittime

Based on today's Bittime market, the USDT price was observed to have increased by 0.10 percent in the last 24 hours. Currently the price of USDT to IDR is IDR 15,700.

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The Future of USDT and Stablecoins: Could It Still Shine?

The future of USDT is still full of uncertainty. Government regulations and developments in blockchain technology may impact its dominance in the market. However, despite the controversy, stablecoins like USDT are believed to have great potential. They have the potential to play an important role in the future of digital finance, especially to provide access to a stable currency for people in countries with high inflation or economic instability.

Only time will tell whether USDT will continue to shine amidst the looming controversy. However, what is certain is that the presence of stablecoins such as USDT has opened a new chapter in the world of crypto, offering the stability that investors have been longing for.

How to Buy Tether (USDT) on Bittime

You can buy and sell  Tether (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  the USDT/IDR market pair . To be able to buy  USDT/IDR  at  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 assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn  the complete guide on how to buy Tether (USDT) on Bittime . 

Monitor price chart movements   of Tether (USDT) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time 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.