Now that cryptocurrency has increased in popularity, there are no more than 21,000 coins in existence available to trade on different crypto exchanges. Between 2021 and 2022, the number of cryptocurrencies had nearly doubled from 12,000, which is a surprising hike for a one-year difference.
Today, we will discuss the tether cryptocurrency, which is one of the stablecoins on the crypto market. In between evaluating your cryptocurrency investments, try your luck on casino gaming via NetBet. While not every wager will net a win, have fun with the experience as you take a break from crypto investing.
What Is A Stablecoin?
A stablecoin is a cryptocurrency that is tied to the value of a fiat currency. The tether cryptocurrency is linked to the value of the United States Dollar (USD). Hence, because of its name, the value remains about the same for stablecoins in relevance to the fiat currency to which they are tied.
Investing in a stablecoin is a bit safer than investing in other types of cryptos that can easily fluctuate in value over time. As the value of the USD rises slowly, the value of the tether will increase along with it.
While the United States Dollar rose by 12% throughout 2022 in comparison to other top currencies in the world, the new double-digit inflation rate is set to be lowered back to a reasonable normal.
History of Tether Cryptocurrency
Originally named Realcoin, the tether cryptocurrency was released in July 2014 by three co-founders surnamed Collins, Pierce, and Sellars in Santa Monica, California.
The first coins arrived in October 2014 thanks to the Omni Layer Protocol that made the first tether coins available on Bitcoin blockchain technology. It reached an all-time high of $1.22, but it is now a steady $0.99 to $1.00 close to the relevant value of the United States Dollar.
How Trading Tether Tokens Work
As one of the most popular stablecoins, Tether tokens continue to be traded in the cryptocurrency space. They have achieved a market cap of more than $77 billion per year thanks to trading on blockchain technology for the last eight years.
While you can maintain the consistent value of your Tether investment because of its affiliation with the USD, you can have command over your investment by changing it over to different crypto wallets as you desire without the value fluctuating drastically like other cryptos.
A crypto stock exchange or individual trader deposits flat currency into a specific bank account. Investors petition to purchase tether tokens using real-world currency. The tether tokens become traded from investor to investor or moved from crypto wallets as desired.
Tether tokens only enter circulation when investors request to have them. Hence, this keeps circulation balanced on blockchain technology.
If needed, investors can deposit their Tether tokens via tether.to to turn them back into fiat currency. When this happens, the Tether platform discards these exchanged Tether tokens from circulation so that it can return the fiat currency, for example, the USD, to the investor equal to the number of tokens they originally submitted for exchange.
The Future of Tether Tokens
Tether tokens will continue to be a great stablecoin option for cryptocurrency investors. From November 2021 to March 2022, Tether was about $0.98 in value before stabilizing more so at $0.99 from April 2022 to November 2022.
Experts say that the Tether token may rise from about $0.999 to $1.001 by 2025. While this is not a large hike, it can add up depending on the amount of Tether tokens you have already invested into your cryptocurrency wallet.
Do you have Tether tokens in your cryptocurrency wallet? Let us know your experience with them in the comments!