Crypto Academy Week 6 Homework Post for @yohan2on | Stable coins

Homework Task:

Homework task: Write about any one of the following stable coins; Tether(USDT), Steem backed dollar(SBD) and DAI.

What is Tether (USDT)

Tether is a cryptocurrency that is hosted on the blockchain technology. Its cryptocoins are supported by equal amount of dollar, Japanese yen or the euro and any other fiat currencies. Tether was initially launched in 2014 as a Realcoin but it started trading in 2015 when it was rebranded as Tether by Tether limited.
The Tether acronym is (USDT), that is the symbol used for trade. It is in the family of the stable coins. These group of cryptocurrencies are out to keep the market value of crypto asset fairly stable against others types of cryptocurrencies like the Bitcoin and Ethereum.

Tether was created to be transparent because they publish daily report to make sure that the USDT in circulation matches with their assets. It is also stable because it built or anchor on the USD in a ratio 1:1 which is a fairly stable currency. It also offers reduce transcations charges to its users coupled with a seemless and very easy transcations making it very easy for individuals and Marchant.

It was design mediate between cryptocurrencies and fiat currencies in such a way that one(1) Tether will be equal to one dollar (1$). Although, there are no guarantees regarding this claim from the company. It's has become a major source of liquidity for cryptocurrency markets because most Bitcoin transcations are done using Tether. Similarly, funds are converted from USD to USDT to make it easily transferable and tradeable. The value of the USD is almost preserve. Therefore, Tether is the bridge between fiat currencies and cryptocurrencies. As a stable coin it is backed by reserve assets and it offers minimal price in terms of vitality. It is both a medium of exchange and a currency to store value. Whenever there is a bear run on Bitcoin market for example, traders convert there Bitcoin to Tether to prevent their funds from bleeding out.

In conclusion, although the Tether is still in its early stages, it is very promising especially in changing the cryptocurrency volitility narrative. Therefore, encouraging more people to hold the currency in the near future.

Thank you professor @yohan2on for this week lesson and the time you took out to look at my post. I also want to appreciate the @steemitblog and @steemcurator01
@steemcurator02 for their support.