A good amount of investors refused to be petrified by the high volatility of Cryptocurrencies like Bitcoin. Such investors wished for a stable coin that functions like other cryptocurrencies without the risk of rising and falling in value.
Tether is a name for digital currencies pegged to fiat; USDTether means USD pegged currency. Itâ€™s both centralized and decentralized. Because USDT is pegged to the dollar it means that one dollar is equal to one USDT. What you bought is what youâ€™ll have for a long time without losing or gaining any value. These slight features about USDT removed most investorsâ€™ fear.
The Centralized Nature of USDT
Itâ€™s impressive and genuine that USDT operates on the decentralized Bitcoin blockchain. But Tether Limited is Centralized. Tether Limited controls the affairs of USDT; they create USDT when you pay fiat to their account number listed on Tether.io transparent page. In a reversed form theyâ€™ll destroy your USDT if you decide to sell USDT for fiat. And will send you Fiat.
What makes USDT decentralized
The omnilayer protocols work on the bitcoin blockchain as a transaction ledger. Besides tether.io webwallet, the Omni wallet is easy and safer to hold USDT. As a half decentralized platform USDT can be saved using your hardware wallets but keep your keys safe from theft. Regardless of Tether Limited, bitfinex is another exchange that trades USDT. And all transactions about USDT circulations are tracked on omnichest.info.
How secured is USDT?
USDT as a centralized currency looks detrimental to users, but they met all security requirements to avoid users from hackers and cyber theft. USDT reserves fiat to ensure your money is safe. People ask questions like â€śUSDT COULD GO BANKRUPT”. They work with the best auditors to calculate all transactions and their bank is happy with them. So the company is not close to bankruptcy.
In summary, USDT is a decentralized digital currency too. It could face the liquidation that every other cryptocurrency face. So you are advised to keep your keys safe and donâ€™t patronize their tether.io web wallet if you tend to save a huge amount of money on your wallet. Stay careful and do your research. Thanks.