Today, we want to dedicate our article to the organization Tether and its native coin USDT, which has long been in demand in the cryptocurrency market. How to use it correctly, what is needed for it, and whether it is profitable, that is what our topic is all about.
Practically all cryptocurrencies have two main drawbacks:
The first is the lack of real assets.
The second is the volatility of the exchange rate.
USDT specifically addresses both of these issues simultaneously. The Tether company claims that the coin is backed by US dollars at a 1:1 ratio. This is an ideal solution that allows selling alternative currencies to the US dollar quickly and without exorbitant fees on special exchanges.
Let's consider this with an example
What would happen if this cryptocurrency did not exist? Suppose you decided to purchase dollars for USDT coins on an exchange. Then you would need to withdraw funds through an exchange point, followed by spending time waiting for the exchange itself. As a result, you would lose an entire day, not to mention the commission. In such a scenario, it is neither profitable nor cost-effective.
Thus, if you took 1 dollar, you would get 1 USDT.
The main goal of the project was to achieve free conversion of dollars into crypto. The platform shares many similarities with Bitcoin. What are the advantages of USDT:
a reliable level of protection against fraud;
accessibility of conversion combined with ease of use;
the presence of universal wallets with additional convenient features;
excellent combination of decentralized operations with transaction transparency.
As we mentioned earlier, Tether's coins solve two key cryptocurrency problems – volatility and asset backing. However, this comes with other new problems.
The first is the issue of backing. It is impossible to know for sure whether the company's account has one dollar for every 1 USDT. Despite superficial checks, doubts arise about the adequacy of the backing.
There is a problem of centralization. Storing money and issuing USDT is a risk if conflicts arise with government structures.
Lack of communication is also an issue for the Tether organization. The company's collaboration with the cryptocurrency exchange Bitfinex was kept secret, and only after the incident with the leak of some documents did everything become public, after which their further relations continued officially.
There is no specific control over the number of coins issued. Unfortunately, the lack of control does not allow knowing the exact figure. For example, in 2018, the issuance of coins was twice as much, but no one knows the exact reason for such an action.
The terms of service (terms of service) for USDT state that since the beginning of 2018, US residents are prohibited from purchasing coins on the official website, and in some states, they cannot even be owners. It is unknown whether residents of the United States will adhere to such regulations; this will become clear over time. Will Tether face any issues with the government?
How and where can you use the USDT cryptocurrency?
Tether (USDT) is used absolutely all over the world, except in regions where it is prohibited. The peak of popularity was in 2017.
You can use it in such areas as:
on exchanges;
payment for services;
exchange for various assets;
invest in a confidential type in USD.
Summing up
The USDT coin is indeed considered one of the most convenient tools for use within cryptocurrency exchanges. The company invests all its resources, allowing it to maintain the exchange rate for 5 years. However, Tether has a considerable number of critics who openly call it a Tether scam.
Nevertheless, no one has yet been able to resist all the difficulties as Tether has. And if there is a person who creates a similar platform, taking into account the elimination of existing problems, it will be an ideal option for many, even for us!
We hope that our article has not left you with any questions about the USDT cryptocurrency. If you want to mine these coins – we wish you good luck. You will definitely succeed!
