For cryptocurrency users, Tether is one of the best crypto rocking the industry. Along with other digital currencies in the industry like Bitcoin, Tether is one of the most traded cryptocurrencies, ranking #3 in the Crypto Market capitalization. With that being said, is Tether a good investment opportunity? It’s a speculation that many people make, and to best answer the question, let’s first look at its future and market trends.
But before that, let’s get to know what Tether is.
Tether preview
Tether is just like other digital currencies based on the block chain founded in 2014 and entered the trading market in 2015. It is a member of the newest digital currency categories known as “stable coins”. It is backed by traditional currencies such as dollars and euros. Since its inception, it has gained popularity due to its unique presentation.
Although it is a category of stable coins, it serves the purpose of stabilizing the valuation in contrast to high price fluctuations of other digital currencies such as Bitcoin and Ethereum. This is a quality that makes it a good digital currency for those looking to store value or use it as a medium of exchange, although it can also be used as a speculative investment medium. Its important to understand that since tether is pegged to the USD dollar, it is also affected by the inflation.
Tether’s future
Tether is straightforward as it lacks many complexities. In recent years, this member of the cryptocurrency has grown in popularity and is one of the most well-known digital currencies in the crypto industry. Tether has connected well with the US currency.
Although a number of controversies have revolved around it, it is a very good opportunity for those looking to invest in the crypto industry. From the last record, Tether stands out as one of the cryptos with many users. Many traders use it as a digital currency rather than a store of value.
Tether is predicted to revolutionize its exchange methods in the near future, especially when it comes to international transactions. These are the steps that make it one of the best methods of store of value and medium of exchange.
Should I invest in Tether?
Just like its competitors like Bitcoin, investing in Tether is all about taking the risk. Even if it is currently enjoying wider acceptance in different parts of the world, this is no guarantee that it will have a positive future.
Its futures can rise or fall in a matter of seconds, just like other cryptos.
But if you’re willing to take the risk, you can invest in Tether, which already has over 14.4 billion USDT tokens in the market and is backed with about $14.6 billion in assets, even though there have been some claims that these assets do not fully exist.
The only speculation people have on their minds is whether Tether is 100% backed by the US Dollars. It is also controversial because Tether is centralized and pegged to the USD. In addition, tether itself does not guarantee the stability of its value in the near future, although it has been ranked as the third best cryptocurrency used worldwide. Traders can easily buy USDT with PayPal, or any other convenient payment method, local or even global one.
Conclusion
If Tether moves towards decentralization, it can be a good store of value and medium of exchange. But while it remains centralized, it will continue to receive criticism and slow down its growth and popularity in the future.
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