Tether is a cryptocurrency issued by the company Tether Limited. Born as a stablecoin, it was initially stated that each token was backed by a US dollar, however, several controversies have put this point on the table.
Tether It was the first stablecoin to exist. It was launched in 2014 by businessman Reeve Collins; bitcoin investor Brock Pierce; and the developer, Craig Stellers. Since then it has become the most important by market capitalization.
Tether was originally available through the Omni Layer, but can now be accessed on several blockchains. With the approval of Tether Limitedyou can switch between USD and Tether, a mechanism that helps keep the stablecoin anchored.
The Tether Limited network is in turn controlled by the owners of the Bitfinex cryptocurrency exchange, which was accused by the New York Prosecutor’s Office of using Tether funds to cover 850 million in missing funds since mid-2018.
Cryptocurrency investors and regulators have also joined the debate by pointing out that the stablecoin not fully guaranteed, a situation that has taken it to court because its users have no guarantee that their tokens can be exchanged for dollars. On April 30, 2019, the company’s lawyer confirmed that the token was tied to an exchange rate of $0.74.
In 2018, Bloomberg reported that the tether company was under investigation by the United States Federal Prosecutor’s Office for alleged manipulation of bitcoin; The following year this crypto surpassed the most popular in daily trading volume and monthly.
While the debate becomes more heated every day about the convenience or not of its use, Tether is trading this day at 1.000063 USD, which represents a change of 0.04% regarding the last 24 hours and a variation of 0.02% with reference to its value reached in the last hour.
In terms of its market capitalization, it has maintained the position number 3 among digital currencies.
a virtual currency is a digital medium exchange that does not physically exist and that uses cryptographic encryption to ensure the integrity of its operations, while maintaining control in the creation of its new units.
Bitcoin was the first to be launched on the market and was then followed by others that have also had great relevance such as litecoin, ethereum, IOTA, tether, cash, ripple, decentraland, even some that emerged from memes like dogecoin.
Cryptocurrencies have various elements that make them unique: not being regulated by any institution; not requiring third parties in transactions; and almost always use accounting blocks (blockchain) to prevent new cryptocurrencies from being created illegally or transactions already made from being modified.
However, since they do not have regulators such as a central bank or similar entities, they are clearly identified as not being reliable, being volatile, promoting fraud, not having a legal framework that supports its users, allowing the operation of illegal activities, among others.
Although it could be a paradox, at the same time cryptocurrencies guarantee security to their miners regarding the network in which it is located (network) and which implies code management; Hacking this security is possible but difficult, since whoever tried it would have to have computing power greater than even that of Google itself.
To acquire and exchange them you can through specialized portals. Its value varies depending on supply, demand and the commitment of the miners, so it can change faster than traditional money, but the more people are interested and want to buy a certain currency, the higher its price will be.
However, whoever invests in this type of digital assets must be very clear that this form brings with it a high risk to capitalWell, just as there can be an increase, it can also unexpectedly crash and wipe out the savings of its users.
To store them, users must have a digital purse or wallet, which is actually a software through which it is possible to save, send and transact cryptocurrencies. In reality, this type of wallet only stores the keys that mark a person’s ownership and right to a certain cryptocurrency, so these codes are the ones that should actually be protected.
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