Home Altcoins News Why Safe Habor Tether (USDT)? Buy Bitcoin (BTC) Easily No Regulatory Hurdles

Why Safe Habor Tether (USDT)? Buy Bitcoin (BTC) Easily No Regulatory Hurdles

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Tether_IO expressed, USDt is not “losing” its peg. Subject to our terms of service, Tether issues and redeems one USDt for one dollar: no more, no less. This is irrespective of market conditions. As the pioneer of the stablecoin model

Tether represents a battle-tested technology that has been through many cycles.

In this market, many are flooding into USDt as a safe harbor. On Bitfinex and Kraken, the market price closely reflects the Tether to the Dollar on USDt.  On Coinbase, USDt is at a premium.

Further clarified stating, sites tracking pricing and providing analysis should be approached with caution as they use exchanges as data sources, many of which were unreachable during the dip.

Many critics are like:  Can you confirm that everyone is and will always be able to redeem 1 USDT for 1 USD? Not by some other ‘reserves’, but USD.

Some were like:  USDT a “safe habor”? But it’s only backed by $0.03 real cash, despite your earlier claims that every USDT is pegged 1:1 with dollars? “Anything else is conspiracy!” And your terms state you’re under no obligation to accept redemptions. Doesn’t seem very safe to me.

Does anyone know the outcome of today’s (5/19) NY Attorney General Audit Court Hearing? Guessing they kicked the can down the road, but really need to know, so I know if I need to avoid using USDT. Thanks!

For new entrants:  Tether (USDT) is equal to USD in value, but it has lesser regulatory hurdles and it provides for fast settlement and provides the stability of fiat currencies.

Is Tether Safe? In technology terms, USDT is absolutely secure.  It is a “centralized token” developed on the decentralized Ethereum blockchain and now they are in several other blockchains too – that’s meant to be backed by 1 US dollar stored on Tether Ltd’s balance sheet in the form of cash in bank accounts and government bonds.

Will USDT go up? It is possible. If the crypto industry enters another winter period, it is more than likely that people will rush towards Tether and other stablecoins in search of a safe haven. But, it is unlikely that the coin’s price will remain as high for as long as predictions state. The logic is during crypto winter people will liquidate their crypto and will want to go back to fiat.  And, instead of going back to fiat, they choose to invest in USDT for advantages like lack of regulatory hurdle, same value as fiat etc.  Means when the fiat and crypto world are in chaos – holding in USDT gives a psychological perception of holding value in a safe place!

What happens if Bitcoin Crashes? The expectation is that during a crash, traders will race to sell their bitcoin in exchange for Tether, which is similar to the U.S. dollar in that it is recognized as a temporary safe haven amidst extreme price volatility. And when things are safe, people reinvest value stored in USDT to Bitcoin.

Tether is used to purchase Bitcoin.  An increase in the supply of Tether merely shows demand for Bitcoin.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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