Cryptocurrency is a digital currency which is being used now more than ever. The popularity of the Tether crypto coin is increasing by the day and we are here to shed light on the reason why. Tether was launched in 2014 being the first blockchain-enable platform which facilitates the use of fiat currencies digitally.
The working mechanism of Tether coin is to disrupt the conventional financial system by providing a more modern approach to money. It has made its way to the top by providing its customers the ability to make transactions with traditional currencies via blockchain.
Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin is kept secure and safe from fraudsters.
In the year 2009, Satoshi Nakamoto introduced Bitcoin (BTC) making it the original cryptocurrency. Just like other cryptocurrencies, bitcoin runs on a blockchain and logs transactions in a ledger that is distributed across a network of computers. The concept used in bitcoin for the verification of any additions to the ledgers is called proof of work wherein the miner must solve a cryptographic puzzle. Due to this mechanism, bitcoin is kept safe.
Since the first year, Bitcoin's price has been increasing. The price for Bitcoin in May 2016 was about $500 which has now, in 2024, increased up to $60,985 which shows a growth of about 12,600%.
Ethereum or Ether is both a crypto coin as well as a blockchain platform. It is the favorite of developers because of the potential applications it has. There are smart contracts having the ability to automatically execute when you meet the conditions.
With the Ethereum cryptocurrency token, we will find that there has been tremendous growth. The price went from $11 to around $2,675 currently from the year 2016 to 2024 which gives it a growth of approximately 30,850%.
Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins. As of July 29, 2024, the price of USDT is $0.9999.
Comparing the top 3 cryptocurrency coins brings in our next coin i.e. Tether (USDT) which is a stablecoin. This means that the coins are being backed by fiat currencies such as the USD and Euro. Hypothetically, the crypto coins keep the same value as these coins. And theoretically, Tether is supposed to value more consistently as compared to other cryptocurrencies.
Moreover, investors who are aware of the extreme volatility of other crypto coins favor this coin more. USDT's current price is $1.
The coin has a total supply of 118.06 billion USDT and the circulating supply is 116.998 billion USDT. There is no limit to the maximum supply of this coin.
The fully diluted market cap of this coin currently is $118.15 billion and the price of Tether crypto coin is $1.
Tether USDT is a token wherein USDT is a stable coin, a digital dollar which is powered by the blockchain technology. It has been pegged to be 1:1 to the USD.
The most unique feature of USDT is that Tether generates its value so that it remains pegged to the USD. And as per Tether, whenever new USDT tokens are issued, the same amount of USD is allocated to its reserves. This makes sure that USDT has cash equivalents as backup.
In the highly volatile crypto market, cryptocurrencies are bound to rise and fall by 10-20% per day. This makes them really unreliable as a store of value. With USDT, these fluctuations do not matter as much.
This property makes USDT a safe haven for crypto investors: during periods of high volatility, they can park their portfolios in Tether without having to completely cash out into USD. In addition, USDT provides a simple way to transact a U.S. dollar equivalent between regions, countries and even continents via blockchain — without having to rely on a slow and expensive intermediary, like a bank or a financial services provider.
Due to this feature, USDT is seen as a safe choice for crypto investors. Meaning, during a highly volatile crypto market period, investors have the option to fill in Tether in their portfolios without completely cashing out into USD. Moreover, USDT offers an easy way to the users to transact their currency between different regions, countries, and even continents with the help of blockchain without facing any delays.
But, the Tether cryptocurrency coin has seen a number of controversies over the years regarding the validity of its claim about USD reserves. This disrupts USDT's price at times due to which the price has gone down to $0.88.
