What is Tether and how does it work as the world's biggest stablecoin?

3 answers

• Nov 24, 2021 · 3 years ago
  Tether is a cryptocurrency that is designed to be pegged to the value of a traditional currency, such as the US dollar. It operates on the Ethereum blockchain and is backed by reserves of fiat currency. Tether's main purpose is to provide stability in the volatile cryptocurrency market, allowing users to trade and store value without being exposed to the price fluctuations of other cryptocurrencies. It works by issuing tokens that represent a certain amount of fiat currency, which can be redeemed for the underlying currency at any time. This ensures that the value of Tether remains relatively stable compared to other cryptocurrencies.
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• Nov 24, 2021 · 3 years ago
  Tether is like a digital version of the US dollar. It's a stablecoin, which means its value is pegged to the value of a traditional currency. In the case of Tether, it's pegged to the US dollar. This makes it a popular choice for traders who want to hedge against the volatility of other cryptocurrencies. Tether works by maintaining reserves of US dollars in bank accounts and issuing tokens on the blockchain that represent those dollars. These tokens can be traded and used for transactions, just like any other cryptocurrency. The idea is that 1 Tether token will always be worth 1 US dollar, providing stability in the crypto market.
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• Nov 24, 2021 · 3 years ago
  Tether, also known as USDT, is the largest stablecoin in the world. It is issued by Tether Limited, a company that claims to hold an equivalent amount of US dollars in reserves for every USDT token in circulation. Tether works by allowing users to convert their US dollars into USDT tokens, which can then be used for trading or storing value. The main advantage of Tether is that it provides a stable store of value in the volatile cryptocurrency market. However, there have been concerns about the transparency and auditing of Tether's reserves, as well as its potential impact on the overall stability of the cryptocurrency market.
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