Tether (USDT) current price is $0.993 with a marketcap of $2.04 B. Its price is -0.45% down in last 24 hours.
- Tether (USDT)
- Live Price $0.993
24h % -0.45%
- Market Cap$2.04 B
- Volume$42.17 M
- Available Supply2.06 B USDT
More Info About Coin
There are literally thousands of cryptocurrencies fighting for investors’ attention, so there are some who are willing to risk being controversial to stand out from the masses. Tether (USDT) has done this by attaching its value to USD currency on a 1 to 1 basis.
This review will look at several technical mechanisms it uses to accomplish this, and those who do not believe it has the ability to last in the long run.
A Few Technicals
Tether uses the Omni Layer Protocol that is present on the Bitcoin blockchain, basically creating the 2.0 version of Bitcoin. So there are no compatibility problems with the forerunner’s currency. The projected goal is to establish a more stable version of Bitcoin, which in itself has raised some eyebrows.
Two of the methods used by Tether to begin accomplishing its goals are a Proof of Solvency and Proof of Reserves Process as defined by its whitepaper. The Proof of Reserves method is critical to advance its case that every Tether coin is backed by $1 USD and therefore a stable cryptocurrency.
One estimate puts the number of USDT coins at 1 billion, a considerable sum given the current state of the cryptosphere. Tether claims that it holds the USD amount of Tether (USDT) issued in a Tether Limited bank account.
Equally important is the Proof of Solvency method. The bank account balance is available on its website, available to all. This is a level of transparency that is regularly audited to insure its accuracy and bring investor confidence to the currency.
Combined with the security of the established Bitcoin blockchain model, Tether is offering a stablecoin to the public. Translated, that means it is a cryptocurrency whose value will not change over time or with the vagaries of the nervous cryptocurrency market.
Usability and Transferability
Because it is a Bitcoin soft fork, Tether can be used to buy Bitcoin and a number of other cryptocurrencies. Transfers between exchanges are also very easy provided an Omni Layer wallet is involved. Add to this the fact that there are no transactions fees and you have more than simply an interesting new cryptocurrency.
There is a small conversion fee when converting between USDT and USD, both ways, but the advantage is you are dealing in USD.
The Critical Side of Tether
Reactions to Tether range from a welcome first step to international acceptance to being a Ponzi scheme. First, the idea of a stablecoin is really nothing that new, given that the Nebula Network has already done that. The problem with Nebula is that it is running on its own blockchain, not Bitcoin’s. Advantage Tether.
However, many investors see stablecoin as the cryptocurrency of the future.
The Man Behind the Curtain
There is a sort of mystery guest here who plays an important role in the existence of Tether. His name is J. L. van der Velde. He is the CEO of the Bitfinex exchange and coincidentally of Tether. That led to accusations of van der Velde trying to manipulate the cryptocurrency markets to his advantage, some even crying out a year ago it would lead to the crumbling of the cryptosphere.
Obviously that hasn’t happened, but the cryptoromance between Bitfinex and Tether is still viewed as more than suspicious. That said, the rise of Tether during the latter part of 2017 and its connection to the rise of value in Bitcoin is fairly well-established in cryptocurrency corners.
Earlier it was stated that Tether’s Proof of Reserves was based on its holding in its Tether Limited account, with a dollar for dollar holding of its purchased coins. That account was originally said to be audited on a regular basis.
But when rumors persisted that the holdings were actually less than the 1 to 1 USD ratio, an independent audit was requested to ensure the cryptocurrency’s value. Tether hired a firm to conduct such an audit but the results are incomplete and the auditing firm is no longer employed to complete it.
At this point, Tether is definitely a risky, volatile choice for investors. Until a reputable auditing firm can give an accurate account of Tether Limited’s holdings, the actual value of a Tether coin is impossible to verify. A favorable report would toss Tether into the ring of viable cryptocurrencies, one that would have the potential to oust Bitcoin from the number one spot. Anything less than 1 for 1 will be a severe blow to the future of Tether.
If you are risk-averse, stay away from this rollercoaster coin until actual numbers can be seen and verified. If you are looking for some adventure in your cryptosphere, Tether may be exactly what you have been looking for. Even if you don’t fit either of these investor types, Tether is worth watching, if for no other reason than to learn some lessons about how the cryptosphere operates. If it indeed is a Ponzi scheme, then you will gain firsthand experience in seeing how one is constructed and operates – and know what to look for in future investments.
Pros & Cons
|Stable coin backed by the USD||Very controversial coin|
|Very low fees||They seem to print new tether coins out of thin air|
|Tether is the most widely integrated digital-to-fiat currency|
|Reserve holdings are published daily and subject to frequent professional audits|
BCrypto Investment Tip
Tether isn't a coin you can invest your money into and hope for a great return. Tether is a stable coin which allows you to sell your cryptocurrencies for USDT during volatile periods in the market to prevent loses etc. It used to be a very risky coin in the past and every stated you should avoid it at all costs but in the recent times Tether proved itself to be a reliable and trusted place to store your money during bear markets or simply storing your money in a stable place.