Tether: Overview of the Coins Backed by US Dollar
Tether is a cryptocurrency project developed by the company Tether Limited in 2015. It is listed on exchanges with USDT ticker. This is kind of a hint isn`t it? Yes, the cryptocurrency does have something to do with one of the leading fiat currencies - US dollar (USD), as well as other fiat money. In fact, the developers wanted to create a cryptocurrency blockchain analogue of the most common fiat currencies so as to digitize them. The platform itself enables users to exchange fiat money (US dollars, euros are already available, japanese yens and british pounds are expected soon) for a digital currency. 1 USDT is always supposed to cost 1 US dollar and is always backed by it. In other words, there's a dollar standing behind each USDT and the more Tether coins are there in the system, the more US dollars should it be on bank accounts of Tether Limited.

Rate of Tether cryptocurrency

As we have already mentioned,Tether rate corresponds to US dollar, however, small fluctuations are always possible and the actual rate of USDT can be a bit more or less than 1 US dollar. In addition, as of the end of May, 2018, coinmarketcap shows the rate of 0.99 USD per a USDT coin. The market capitalization of the project skyrocketed in summer, 2017, and less than in a year, by the summer of 2018, it has already been around 2.5 billion USD. That allowed Tether to reach and keep the 14th place among all virtual currencies by market capitalization (May 24th, 2018). The fact that the rate of USDT should not significantly differ from 1 US dollar, is considered by the developers as a solution to prevent extreme volatility, usually associated with most of virtual currencies. Tether is as volatile as the US dollar itself, so users are not to expect the rate of the coin to change significantly within short periods of time.

Why to use Tether cryptocurrency?

Tether offers business, exchanges, payment services, digital wallets, ATMs, financial services providers and other users to use cryptocurrency coins fully backed by fiat money. Tether's blockchain allows to store, send and receive digital coins around the world quickly and securely. At the same time, the cryptocurrency is stable and has a good liquidity as it is backed by US dollar. Tether is a tool that enables users to enjoy all advantages of the blockchain technology and at the same time is stable unlike many other digital currencies because it is backed by real money.

How to buy and sell Tether?

You can add, send and withdraw Tether coins directly on the project website, where you can find special buttons for each of these operations. Tether has a good user interface, so even crypto-beginners will probably have no problems. The coins are also listed on the main cryptocurrency exchanges like EXMO, Poloniex, Bittrex, Kraken, Cryptopia, Bitfinex, etc.

Issue and mining of Tether

The total number of Tether coins is 2,830,109,970 USDT, however today there are approximately 300 thousand fewer coins in circulation. The cryptocurrency is issued by the company in a centralized way, so Tether does not provide direct mining opportunities. Tether Limited is a “USDT-Central Bank”, and the more USDT are issued, the more US dollars should be on the company's accounts.

Risks related to Tether

Despite all advantages of the project, the cryptocurrency community really has different opinions on Tether. Some users say that the fact that USDT is backed by USD not only prevents the extreme volatility, but also, on the other hand, brings risks associated with both financial systems - the cryptocurrency and the fiat one. Many users who support the ideas of decentralization, cryptographic security and anonymity behind cryptocurrency, are not that friendly to Tether that operates closely with fiat money and is itself centralized. Moreover, Tether does not guarantee the exchange of USDT coins for dollars.

Prospects the cryptocurrency

It is difficult to say what is going to happen with this cryptocurrency in the long term and users have different opinions on this. All in all, the coin is rather stable and has a positive dynamics of market capitalization growth. However, some users say that it is not really clear if the increasing number of USDT coins is really backed by fiat money and if it's not just manipulations. At the same time, the circulation number of USDT should always be equal to the number of US dollars on the accounts of Tether Limited. The company also conducts a regular audit and publishes a report on the status of its bank accounts on the project website. The developers also plan to advance Tether`s functionality and expand their market by adding operations with british pound and japanese yen soon. Anyway, the public has different attitude towards USDT, however, the cryptocurrency has still been showing positive market dynamics. Subscribe to The Coin Shark news in Twitter: https://twitter.com/the_coinshark