When talking about USDT the flagship stable coin of Tether, it has been established that these crypto-assets are backed by reserves of cash equivalents. USDT is 100% backed. To establish trust, the intricacies related to the reserves are published every day.
Sydney Ifergan, the crypto expert, tweeted: “Tether (USDT) works like a digital dollar and leverages the advantages of blockchain technology. Hedge USDT to transfer value between exchanges without falling prey to volatility. Good to save deposit value, irrespective of other opinions.”
Paolo Ardoino recently expressed that when high volatility happens, the order books of Bitfinex show their true power. Several others agree and state that Bitfinex has unrivaled liquidity and that Bitcoin pairs, which are the most liquid with combined orders of $60 million, are found in Bitfinex.
Paolo Ardoino tweeted: “Liquidity is much more precious and harder to replicate.”
There are indeed counter opinions. A twitter enthusiast stated that it is correct for anyone looking to place a $20M order into the order book, and therefore does not mind 10% slippage; however, he stated that it was important to look at liquidity for the average trader. Further clarified, “you could look at $1M order and $10k order and see the average price from mid-market.”
Someone else also stated that it definitely would work well, when we are inventing liquidity by printing USD and sending it to the exchange. However, we know that one thing does not clarify all—two different worlds of opinion about the liquidity factor.
Striking a balance, someone said: “The anti-tether replies here when tether literally exists to facilitate cross exchange liquidity is hilarious.”
Investors use Tether (USDT) to move in and out of the stable coin to enjoy the benefits of the swings in the value of Bitcoin and cryptocurrencies.
When BTC is priced $20,000 it is sold for 20,000 USDT. If the price of the BTC goes down to $10,000, 20,000 USDT can be used to buy 2 Bitcoin.
Thus, it makes all sense as to why Tether exists. The Tether Fee is zero since inception, and as Paolo Ardoino replies to an outrageous comment on who uses Tether? “Answer: everyone’s and their cats and dogs Fee: it’s 0 since inception. Your outraged comment should have pointed out the fact that is 0 and has been like that since inception.”
Whether people like it or not, Tether is rocking beyond the expensive noises in the market.
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