Tether Report: Most Comprehensive Real Story
Industry Report on Tether: Background. There is no such thing as a stable form of money when you think about it. Even fiat currencies such as the U.S. Dollar and Euro are subject to inflation and diminishing purchasing power, but because these fluctuations are often so small, we still find them usable on a day-to-day basis.Industry Report on Tether: Most Comprehensive Real Story
For cryptocurrencies, the daily fluctuations are amplified, making them impractical for mainstream use. While volatility fuels the use of a cryptocurrency as a speculative asset, it limits its usefulness as a medium of exchange. Cryptocurrencies made it into mainstream media when it was used as a tool of the dark web by the infamous Silk Road, which was shut down afterward. At the time, it was far from being an investment option for retail investors, but they soon fell in love with the price swings.
Suddenly, bankers and financial institutions across the world had an opinion about cryptocurrencies. Everyone was talking about it. Volatility established cryptocurrencies as a potential asset that could one day go mainstream. However, volatility can also be a double-edged sword. It can attract investors when there is an upswing in prices as it happened in November 2017 when the prices shot through the roof.
It can also lead to an exodus of investors, as it did this year, where it shed off more than 50 percent from its year-end price of $13,000. The ill effects of the price drops have also been felt in the market as it affected trading volumes and interest in the crypto market.
To see a future where cryptocurrencies are used on a day to day basis, volatility needs to be tackled, and this is where Tether comes into play. Tether is a stablecoin that was created to be stable enough in its purchasing power or is at most slightly inflationary, to incentiv...