Why Tether (USDT) Is Raising Eyebrows?
The heartbreaking news that Bitcoin has become unstable since the beginning of the year has not been a happy experience for many people. While many of us are optimistic that the token will one day become stable and gain ground as it did at the tail end of 2017, Tether (USDT) is raising eyebrows.
The controversies surrounding Tether (USDT) has only fueled the token to raise while other cryptocurrencies lose ground. The numerous concerns bothering Tether in terms of its speedily increasing supply has endeared a lot of smart investors to it. As of this writing, the supply of this coin is over 2 billion USDT.
Tether is the digital representation of the American dollar in a Litecoin market. The expectation that the Federal Reserve should handle the issuance of such a token instead of Tether has been there. Some investors are skeptical that the US government may decide to scrutinize this particular project.
Reasons Why Tether is Beating Every Token
The fact that the token is not considered a cryptocurrency that anyone can use the money, or that the company cannot assure transaction with USDT and that it is not backed has not made it lose out on the market. There are reasons why investors like us have taken a special interest in this token:
The Two Billionth USDT Token
It is not uncommon to see a daily print of millions of USDT. Tether understands that it cannot fight off its controversies if it does not do something. What enthusiasts are looking at is the steep amount of currency that is issued. The financial assets of the company have given investors and community members the assurance they need.
Backed by fiat
The Tether Token price is equivalent to $1. The company said that its USDT is fully backed by money. However, the company insists that it is not money itself. Tether cannot issue USDT for deliberation that is other crypto coins like Bitcoin. It cannot redeem USDT for any other digital tokens. The reason is that money is only accepted when it is issued and it is the only money that is offered upon redemption.
Printing at Convenient Time
Time is important in the world of cryptocurrency, a second can change the fate of the trading price of a token. Tether knows the perfect time to print. When Bitcoin price was unstable, Tether responded by printing more tokens and distributing into circulation. When the price of Bitcoin increases, it will issue USDT to keep its trend going. This may sound like a conspiracy but it has not been proven to be a crime.
The reason why most of us are making use of USDT is that Tether has promised to provide business a fiat-backed digital token. This digitalized token can be used to make transaction across the world easier and instantly without costing more when you compare it with its competitors.
The bad press will continue against Tether (USDT) since it is natural for humans to be suspicious given that Tether has no arbitrage prospect or that it will appreciate in value any time soon.