STEEM CRYPTO CHALLENGE: USDT IN VIEW

Thank you for joining me today for the challenge. Today, I want to talk about USDT, a token I’m holding in my Poloniex wallet presently.

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USD TETHER, What It Is
USDT is used as a stablecoin in most exchanges as a blockchain based cryptocurrency. This cryptocoins, which is highly in circulation, are backed by traditional fiat currencies like Dollar, Euro Japanese Yen. This backing by traditional fiat makes USDT relatively stable, thus the name stablecoin.

USDT is held in designated bank account. The native token of the Tether network has Tether as the native token, which is traded as USDT symbol.

Why I Chose USDT
The volatility in value of cryptocurrencies necessitated the introduction of Tether. Tether is a stablecoin, that aims to bring some checks to the instability of cryptocurrencies valuation.

This is opposed to observed the price fluctuations experienced by popular assets like BTC and ETH. Values kept in USDT remains stable in the midst of market fluctuations. For instance, few days ago, BTC and other assets experienced some downtime. BTC dropped from $19,000 to $16,000. If an asset holder converted his BTC to USDT when BTC was $19,000, the value would remain stable at $19,000 even when BTC had deep to $16,000.

Thus, the holder of his asset as USDT would be $3,000 richer than someone who never converted his BTC to USDT that time.

From this little illustration, it could be advisable to hold USDT when prices are experiencing a major shift.

Tether is a special coin, designed to serve as a bridge between fiat currency and digital assets, thus offering transparency, stability and reduced transaction charges to users.

It is pegged against US dollars, maintaining a 1:1 ratio in value with the US dollars.

It was launched as RealCoin in July 2014 and later rebranded as Tether by November of the same year by Tether Ltd. Tether Ltd is responsible for maintaining the reserve of the value in fiat currency. Tether started trading in 2015.

The Future Potentials of USDT
As a stablecoin, the wide adoption of USDT can’t be overemphasized. This adoption has served as a mainstream in the popularity of cryptocurrency as a whole new payment system.

Also, the use of USDT in exchanges is not limited to the store of value, as Tether can equally be used to purchase goods and pay for services within the blockchain ecosystem. This has proved more reliable because of Tether’s stability in value.

With Tether, there is no risk of one party losing money due to price fluctuations in the course of the transaction.

Have you considered using Tether or holding it? Poloniex offers 11.09% APR for holding Tether in your Poloniex wallet.

For more about USDT, please check here.

Thank you for reading and have a great day.