Tether Price
What is Tether (USDT)?
Released in 2014, Tether (USDT) is the first stablecoin cryptocurrency issued on the market. Each USDT is backed at a 1:1 ratio in USD reserves and other valuable assets. The idea behind Tether is to combine the efficiency and low-cost transfers of cryptocurrencies with the stability of FIAT money issued by central banks.
As such, it provides numerous advantages to cryptocurrency investors, including:
Hedge from volatility - unlike other cryptocurrencies, stablecoins such as the USDT do not suffer from high volatility. This makes them a safe haven for traders and investors when market prices show unpredictable movements.
Reduced trading fees - stablecoins are a great on-and-off ramp solution to avoid paying high crypto-to-FIAT fees when trading on an exchange.
Attractiveness as a method of payment - since the price of Tether remains constant, merchants can use them without being concerned that their profits might lose their value over time.
Remittance and cross-border transfers - international money transfers are costly and slow. Tether (USDT) allows users to enjoy the advantages of blockchain technology such as low fees and fast transactions while conserving the stability of the US dollar.
Tether is most commonly used as a means of exchanging cryptocurrencies. As a result, the daily volume of USDT is the highest on the market, generally twice as big as that of Bitcoin. Tether (USDT) is often seen as the main culprit for the saturation of the Ethereum network.
How Tether (USDT) works
The company behind the creation of USDT, Tether Limited, issues and distributes the Tether tokens in exchange for real-world assets.
The USDT token was initially released on the original Bitcoin blockchain, by using the Omni layer protocol. This software layer built upon Bitcoin allows users to create custom assets and currencies. The Tether tokens issued on Omni use the Bitcoin ledger for their transactions, making them extremely secure.
After the success of the Ethereum blockchain in 2017, Tether Limited announced that they would be releasing a new Tether token, based on the ERC-20 protocol. Currently, these Ethereum-based USDT tokens make out for the largest part of the coin’s market.
Finally, Tether can also be found on two other smart contract blockchains, Tron and EOS.
Worth noting is that the USDT tokens from different blockchains aren’t compatible with each other’s wallets. Before making a Tether transaction, ensure that the USDT coins you are sending or receiving match the type of the destination address.
Who invented Tether (USDT)?
J.R. Willet is the American developer who invented the Omni layer protocol and released the MasterCoin whitepaper, which is the basis of the Tether coin. A graduate in computer sciences, Willet is considered to be the inventor of the stablecoins and the concept of ICOs.
Together with entrepreneurs Brock Pierce and Craig Sellars, Willet established the Mastercoin foundation. The startup launched the precursor to Tether named “Realcoin” and released the first tokens on the Bitcoin blockchain in October 2014.
You can read more information about the background history of Tether here.
Cryptocurrency exchange Bitfinex was a big supporter of the project and was the first to list Tether on the market. The efforts of both companies would eventually merge into a single project that was ultimately renamed Tether Limited.
Tether (USDT) price today
Unlike other cryptocurrencies, the USDT price is not subject to extreme volatility and price fluctuations. By design, the Tether price USD is always equal to $1.
With that said, Paybis provides you with a Tether price chart that can be used to consult important benchmarks, including:
The Tether price live.
The market cap of USDT, in correlation with the Tether price today.
The circulating supply of Tether.
Furthermore, in addition to using the Tether chart to check out the USDT price, you can compare it to other FIAT currencies. This current Tether price can be used to measure the performance of the USD versus the EUR or the YEN, for example.
Finally, by personalizing the timeframe of the chart you can compare the Tether price today to the historical price action of other government-issued currencies.
