What is Tether?

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  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

Have you got any insights into the Tether cryptocurrency? What does this it do? Who uses it? Is there a market for Tether?

  • Benutzernamesmartfreddy
  • Status Member
  • Registriert seit1/24/17
  • Beiträge31

Tether is a cryptocurrency which is, according to the claims of its prorietors, fully backed by U.S. dollars. That means every 1 Tether is backed by 1 USD. Tether is used by some cryptocurrency exchanges and traders as a medium between cryptocurrency and fiat currency, similar to the way in which some banks use Ripple as a medium of transaction between fiat currencies.

There is likely a market for a crypto backed by fiat currency, and such a cryptocurrency could potentially gain adoption as an actual currency rather than a speculative instrument because its value is fixed to an inflationary fiat currency. Of course the fact that its value is directly linked to the USD makes it useless as an investment vehicle - as you can simply purchase USD as an investment.