How Does Tether Mining Work

How Does Tether Mining Work

Tether, or USTD, is a blockchain-based digital currency.

Tether was launched in July 2014 as “Realcoin”, and repositioned as Tether in November of that year by “Tether Ltd”.

In practice, Tether trading began only in February 2015.

In November 2017 after the merger (FORK) the system was hacked and $ 31 million was stolen.

In spite of that, the system has recovered and has not lost public trust.

Before 2019, Tether claimed that coins in circulation are backed by an equal amount of Fiat currency (“regular” coins such as Dollars, Euros or Japanese yen) and stored in a dedicated bank account. 

In March 2019 it changed the backing to include loans to affiliate companies.

Tether’s tie to the to fiat currency differentiates it from other cryptocurrencies, its value is ‘tethered’ to the US dollar’s value – each USDT is worth $1. 

On the other hand, Tether Limited states that tether owners have no guarantee that tethers will be redeemed or exchanged for dollars.

The currency was developed under the following vision:

  •         Enabling international transfers
  •         Enabling stable cryptocurrency

It belongs to a new breed of digital currencies called “Stablecoins”:

A new class of cryptocurrency, a medium of exchange and a source of value retention instead of being used as a speculative investment.

Tether was specially designed to form the necessary “bridge”, the best of both worlds:

“Regular” vs digital currencies, instant processing, and security or privacy of payments: Thus offering higher stability, more transparency, and minimal cost per transaction.

However, Tether Ltd does not give any guarantee for any right to redemption or exchange of Tether coins for real money – that is, Tether cannot be exchanged back for US dollars.

Tether Pros

Fast transactions

USDT transactions are performed within minutes. This is especially beneficial for traders who desire to trade instantly.

Stability

Unlike many other cryptocurrencies that are known for their volatility, the Tether connection to USD makes it relatively stable.

Low or no transaction fees

There are no transaction fees for Tether, although external exchanges or wallets may charge fees.

There is a small fee to pay for converting USDT to USD, and vise versa on the Tether Platform.

100% Backed 

Every Tether is backed, by traditional (fiat) currency held in reserves. 

Tether Cons

Not all’s perfect in the Tether kingdom. These are the cons of USDT: 

Lack of Anonymity

Anonymity is at the core of cryptocurrencies concept.

However, if you want to buy USDT, you will need to give up your anonymity aspirations.

In most cases, buying USTD requires documents proving your identity. 

No Mining

Looking for tether mining? Unfortunately, there is no option to mine Tether. 

This is against the Tether concept and most likely to maintain uniformity in value against the US dollar.

Without central control, it will not be possible to maintain this stability.

 

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