What Is Tether & Should I Buy Tether?

Tether is a stable coin, a cryptocurrency pegged to a fiat currency such as the US dollar or the Euro. Every tether coin is meant to remain equal to its fiat currency.

Tether’s most popular peg is to the US Dollar, with a Tether symbol of USDT.

Therefore, one USDT should always equal one US dollar. The aim of such pegging is to remove any volatility from cryptocurrencies, providing a level of stability and certainty in the market.

Tether users will still be subject to any fluctuations in the fiat currency market.

Originally launched under the name of RealCoin in July 2014, it was soon rebranded as Tether in November of the same year. Tether converts cash to the digital currency and pegs the coin to a national currency.

The coins are issued by the company, with the peg to the fiat currency maintained through the holding of collateral. Therefore, in the example of US dollars, for every USDT issued one US Dollar must be kept in reserve. This one to one ratio allows Tether to trade at $1 across all participating exchanges.

How Does Tether Work?

Tether uses blockchain technology to process transactions and was launched on Omni, a platform designed to create and trade digital assets and currency. There is no mining of coins as this goes against the concepts of Tether’s design.

You can buy Tether currency including USDT at most crypto-asset exchanges, as well as directly from the company itself. Tether retains control over minting and removing the digital coins it owns based on levels of fiat currency in reserve.

Tether in theory should have the equivalent fiat currency to match its digital alternative.

Tether wants its cryptocurrency to be a focus as a medium of exchange and currency storage rather than one subject to speculative investment. The notion of stable coins is based on removing volatility by adding stability, transparency and minimal transaction fees to currency exchanges.

Using Tether to transfer USDT or another currency equivalent can be much cheaper than a service such as SWIFT. Transactions are also completed within minutes, whereas fiat currency transactions can often take days to complete.

What Are the Use Cases for Tether?

Tether’s USDT coin can be used on many platforms worldwide. It is somewhere you can store currency to try and offset market rate drops. By exchanging fiat currency for Tether at a one to one ratio you may look to see out a market drop in the value of a fiat currency.

When the currency picks up once more you can transfer your stored Tether coins back to the original fiat currency at the one to one ratio. Storing cash in a stable coin like Tether can also seem advantageous during times of negative interest.

Tether is accepted by a number of payment processing companies, allowing use of Tether to purchase from participating merchants.

However, at present very few stores, in-house or online, accept Tether as payment for goods and services. Its primary use remains aimed at the storage and exhange of fiat currency.

How to Buy Tether in Ireland