Tether is also known as USDT, it is a cryptocurrency asset that is issued on the Bitcoin blockchain through the Omni Layer Protocol. A lot of cryptocurrency enthusiasts will be aware of the problems faced by USDT. The company provides digital tokens linked to their native fiat currency value USD.
It is a well know fact that cryptocurrencies are very volatile, the price of Bitcoin can go from $9,000 to $10,000 and back to $9,000 within 24 hours. This volatility of cryptos is a gold mine for traders, however, investors businessmen might want a more stable cryptocurrency. The search for a stable crypto led to the creation of tether (USDT). The price of Tether is not based on supply and demand of Tether like other cryptocurrencies rather is based on the real world price of the US dollar (USD).
At the start of 2017, the number of Tethers in circulation stood at around $10M ‘USD’,
History of Tether
Tether was first launched in 2015 around February by a Chinese company known as Tether Limited. As of May 2017, over 55 million Tethers (USDT) were in circulation and $20-40 million worth of transactions per day was taking place.
Tether has plans to support more national currencies as well.
Tether is a unique proposition because the digital asset is backed by a real-world asset. It offers certain decent advantages.
Principle of Tether – How is it Created
The workflow of Tether is very simple indeed.
All the user needs to do is submit fiat currency to Tether limited who then creates the Tethers and credits the Tether wallet of the user with equal USD Tether.
To transact with Tethers, the users follow a very simple procedure synonymous to that of Bitcoin. You can send and receive Tethers from other users into a USDT wallet or buy from exchanges that deals on Tether such as Remitano. This is as simple as sending an email.
To send Tether, the receiver’s wallet address and the amount of USDT to be transferred is entered into the appropriate space provided and the transaction will take place via peer to peer, pseudo-anonymous, open source Bitcoin-based platform.
To redeem the Tethers into fiat currency, the Tethers must be submitted to the issuing company who then credits the bank account of the user with fiat currency (USD).
Advantages of Tether
Tether is linked to national currencies like USD, Euro and Yen and the price of USDT is exactly equal to the price of the fiat currency. As the fiat currencies don’t fluctuate much, the Tether is a very stable currency.
Best of Both Worlds: USDT is issued 1:1 against traditional currencies and the fiat currency equal to the value of issued USDT are held by the issuing company in bank reserve. Users will always get 1:1 conversion rate when buying or selling USDT.
Blockchain Technology: Tether utilises the blockchain technology by Bitcoin itself, using an Omni layer which allows the free, instant conversion. The blockchain is sustainable, stable and superior to many other cryptocurrencies.
USDT is one of the most widespread fiat/digital currency network where the bidirectional conversion is possible at many leading exchanges and points of sale including ShapeShift, Bitfinex, GoCoing and others.
USDT utilises Bitcoin’s blockchain network which is very safe and meets every cryptocurrency compliance, regulations and standards, making Tether a very safe currency to transact or hold.
Regular Audit & Disclosure
Tether Ltd. Publishes their holdings daily and run professional audits regularly, eliminating any risk of financial frauds. The Tethers in circulation is tallied against the reserves, daily
Where can I buy or sell Tether?
You can buy or sell USDT on Remitano. It is a very simple procedure. If you are conversant with Remitano you can simply purchase or sell tether just like Bitcoin or Ethereum. Those new to remitano can simply watch the video below You can Open a free Remitano account here.
My Conclusion on Tether
I will say that USDT is quite a very stable form of cryptocurrency and is not really good for those who want to invest or tend to store cryptocurrency with the intention of making a profit out of it. its basic advantage is that it hardly loses value, it is more like storing your money in dollars. Although there might be little fluctuation in its price but its mostly negligible. I will simply recommend it for storing money.