Learn a little about TETHER and how it became one of the most important Stablecoins in the crypto market
Just as decentralized currencies like Bitcoin have existed since 2009, Stablecoins or stablecoins, TETHER ranks first as a stable currency that could be defined as a virtual currency that maintains a price fixed to fiat money, in this case to the US dollar. The cryptocurrency belongs to the company Tether Limited that has been working with the protocol since 2014, but it was not until 2015 that its trade was opened through the BitFinex Exchange.
Tether or USDT was born from the Bitcoin Blockchain, but it did not take its decentralized character by the buy/sell offer but was anchored to a 1: 1 system with the dollar. 1 US dollar in fitness is one digital dollar based on the Tether protocol, although this has not always been the case.
Tether's role in the cryptocurrency market
TETHER, as a stable currency, aims to improve the vision of cryptocurrencies by avoiding the volatile of the market. The stablecoin seeks to take advantage of transparent transactions without state control and Blockchain technology. According to its developers, USDT is backed by fiat money reserves, maintaining its stability.
The function that is given to Tether is to be a bridge between fiat money such as the dollar and cryptocurrencies for its safe purchase. In exchanges such as Binance, the number two most used cryptocurrency, after Bitcoin, is USDT for different operations. Even the experts point to Tether as the main stablecoin, taking into account that other stablecoins such as the EURT cling to the euro and the YENT based on the value of the Chinese yen.
Tether stability
Although TETHER has proven to be a perfect stable coin, this has not left it full of controversy. Some cryptocurrency speculators believe that USDT could fall due to its low support in the dollar reserve. At the same time, other people suggest that the stablecoin could be worth much more than the US dollar.
The reality is that USDT or Tether is ranked number four among the cryptocurrencies with the largest market capitalization after Bitcoin and Ethereum. The USDT protocol has also inspired Binance's Stablecoin, the acronym BUSD or Binance USD.
