Crypto Academy Week 6 Homework Post for @yohan2on [StableCoins (Tether)]

This time I will make a post for the homework of @yohan2on for week 6. The topic I will discuss is the Tether coin.

Tether

Tether or often known as USDT is a coin created by Jan Ludovicus van der Velde, he is also the CEO of Tether Limited and Bitfinex.

Tether is a coin that is included in StableCoin whose value is made with the US dollar as the benchmark. Like many other coins in the transaction process, USDT can be exchanged into US dollars on the platform that provides it.

Tether's goal is to provide facilities for crypto-asset owners so that transactions between cryptocurrency exchanges can use the United States dollar exchange rate. With the presence of USDT, it can protect its users from the high fluctuation of cryptocurrencies.

source

How Tether Coin Works

With the emergence of Tether as a StableCoins type cryptocurrency, this will allow USDT (Tether) to be used as an exchange tool in trading.

As Tether belongs to the category of other stable coins which are pegged to fiat currencies such as US currency, euro, etc. and Tether also supports any crypto coins in production. This can withstand the risk of fluctuations in other common cryptocurrencies.

In Tether's case, it was built to create a bridge between fiat money and cryptocurrency. This provides consumers with security, a sense of comfort, and limited development and finances. Tether was made to cost as closely as possible with the US dollar.

source by CoinMarketCap

From the chart above we see that the movement of the Tether price tends to be stable and is not far from the price of 1 US dollar.

Advantages and Disadvantages Tether

• Advantages

Tether is a very stable coin. USDT is a digital currency that is supported by a 1:1 ratio of conventional reserve currencies. This feature is one of the most important advantages of this digital currency, and you get this stability by converting a monetary currency into a digital currency to keep value and linking it to the price of the national currency, and fixing it, such as the Dollar, Euro, and others.

Tether technology is a technology that provides global security by supporting Blockchain technology, in addition to its compliance with international compliance regulatory standards and regulations. The USDT coin differs from other digital currencies in terms of losses, as it does not have a major flaw that limits trading through it, but the only disadvantage it faces is

source

• Disadvantages

Unlike other coins that can be mined, USDT does not have a system that supports it to be mined. This is because the mining process is not in line with the purpose for which the digital currency is launched, and is not compatible with its nature which is permanently tied to the value of the US Dollar.

Conclusion

The existence of this Tether coin will greatly change the world of cryptocurrency, where we know that many crypto-asset holders are still afraid of the very high movement of cryptocurrency fluctuations, and Tether is able to provide a solution to this problem.

cc: @steemcurator01
cc: @steemcurator02
cc: @yohan2on
cc: @steemitblog