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What is Tether (USDT), How Does It Work and Why They Keep Printing More?

What is Tether (USDT)? Tether is a new breed of blockchain-based cryptocurrency that is tied to a fiat currency (USD) to maintain stability. They’re often referred to as Stablecoins because…

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What is Tether (USDT)?

Tether is a new breed of blockchain-based cryptocurrency that is tied to a fiat currency (USD) to maintain stability. They’re often referred to as Stablecoins because they aim at keeping cryptocurrency stable.

Tether was designed for each token to be represented by an underlying fiat currency. For instance, USD, Euro, and Japanese Yen among others.

The fixing of Tether value to that of fiat currency is aimed at keeping cryptocurrencies valuation stable. It is common knowledge that popular cryptocurrencies such as Bitcoin and Ethereum are quite volatile, hence experience wide swings in prices.

The stability of Tether makes it a good medium of exchange and a mode of storage of value. As opposed to being used as a medium of speculative investments as seen in normal cryptocurrencies like Bitcoin.

How does Tether (USDT) work?

The technical structure of Tether is that it is based on the Omni Platform. The platform provides the foundation from which various digital assets supported. The stablecoin’s built on Bitcoin (BTC) and Ethereum (ETH) blockchains.

The Tether coin is maintained in a state where every 1 USDT in existence corresponds to $1 USD sitting in deposits. That is 1 USDT equals $1 USD. For instance, if you have 10 USDT, then you must be able to redeem it anytime for $10 USD.

Currently, a user can only convert USDT to US dollars through a few exchanges or through Tether itself. However, Tether requires a minimum fee of $100,000 to convert, in addition to charging some significant fees on the transaction.

It means that because 1 USDT equals $1 USD. Crypto exchanges often required to keep a reserve of dollars to back every USDT in existence.

Why do they keep printing USDTs?

Tether as crypto may appear lower in market capitalization compared to Bitcoin and Ethereum. However, the stabelcoin is the most traded cryptocurrency in terms of volume.

As of the time of writing this article, Tether had a trading volume of $1.74 Billion against Bitcoin’s $1.33 Billion and Ethereum’s $270 million. That’s according to data and market intelligence website, Messari.

The extraordinary demand for USDT is because it is seen as stable crypto that investors can use to store value. Considering that the stablecoin’s price is pegged to the US dollar.

Its demand is always up because investors see it as a way of storing value because of its stability, based on the centralized fiat currency. Traders can use Tether to manage the extreme volatility common with cryptocurrency prices.

Reports also indicate that the demand for Tether is driven by OTC traders looking to circumvent China’s strict capital controls. Which limit how much money an individual can moved out of the country.

Why not simply stick with fiat currency?

The truth is that Tether provides important features such as instant transactions and cost-effectiveness. Therefore, traders can take advantage of the arbitrage opportunities to make a profit from trading their cryptocurrencies instantly, 24/7.

In summary, the Tether platform must print USDT in volumes to meet its increasingly high demand, because it is a better alternative to fiat currency.

Conclusion

Tether is a member of the stablecoins family. Although Tether had no collateral, it acts similar to that of a reserve bank to maintain the necessary supply of Tether (USDT) tokens, as dictated by the economic situation.

Tether design is meant to bridge between fiat currencies and cryptocurrencies. Thus, providing users with stable, transparent and minimal transaction fees.

The post What is Tether (USDT), How Does It Work and Why They Keep Printing More? appeared first on Latest Cryptocurrency Market News & Analysis – CryptoZink.

Source: https://www.cryptozink.io/what-is-tether-usdt-how-does-it-work-why-they-keep-printing/

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Cardano must remain above this level to revive from current lows or else…

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Cardano, following the lead of Bitcoin and Ethereum was falling today. In fact, in some ways, the third-generation coin has been following the second-generation coin. ADA’s price movement has been imitating ETH’s price action. It is important to consider what this means for the investors. We know they are hit by losses but how bad is that hit? Can they recover from it?

Cardano following Ethereum?

The coin has seen a consistent price fall in the same 5 day period as Ethereum did, falling by 15.08% at press time. At $2.12, things do not look good for ADA holders.

Cardano’s 15.08% drop | Source: TradingView – AMBCrypto

Those who bought ADA for around $2.41, are presently struggling to sell their holdings. As mentioned due to the price falling to $2.14 these people are dealing in losses. At the moment they represent 67% of all ADA investors.

The addresses in profits did not suffer much, however, but those at break-even did. These addresses went into losses and the total number of addresses in loss rose by 4%.

4% Cardano addresses move into losses | Source: Intotheblock – AMBCrypto

These losses further led to the average balance on every Cardano holders’ address dropping from $40k to $37k.

Cardano addresses’ average balance falls | Source: Intotheblock – AMBCrypto

So are there any hopes of recovery?

Hopes of recovery are alive but for that Cardano will have to maintain its strength somehow. Already its correlation to Bitcoin has dropped to 0.71. 

But that hasn’t stopped bullish investors from trying to gain as much profit as possible. The market books show a 16 million ADA worth $34.2 million higher demand for buying even during such a market.

Cardano continues to be bought | Source: Intotheblock – AMBCrypto

At present, $2 is the immediate and critical support. To minimize losses Cardano must remain above it as a fall from it could lead to further downfall.

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Source: https://ambcrypto.com/cardano-must-remain-above-this-level-to-revive-from-current-lows-or-else

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Webcams Site, BongaCams, Becomes Next Major Player to Accept Dogecoin

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The success and popularity of the cryptocurrency asset, Dogecoin, continues to trend upward as BongaCams has just become the next on a growing list of market-leading companies announcing their adoption of the digital currency as a payment option.  Dogecoin, now the world’s 8th largest digital asset, is surging once again and continues to enjoy support from investors and celebrities alike, including Tesla CEO Elon Musk, who has tweeted favorable comments about the currency on multiple occasions, even calling Dogecoin the “future currency of Earth.”

BongaCams, the biggest webcam site on the web, and recipient of multiple industry awards, has formally announced that they will be the next major name to begin accepting Dogecoin.  BongaCams has built a reputation for being closely aligned to the needs of their customers and the company has made extensive efforts to provide an accessibility experience that is fast, easy, and comfortable.  When it came to offering payment options that customers wanted BongaCams couldn’t ignore all that DogeCoin had to offer in terms of fast and anonymous payment options for their customers, and broad market acceptance.

And what’s not to love about Dogecoin?  After soaring 15,000% in value and reaching a market cap of $88 billion, the cryptocurrency has built one of the largest and most active communities in the cryptocurrency world and is now considered a great alternative for payment options.  Dogecoin’s popularity along with the abundant praise from research analysts who expect the ascent to continue have helped Dogecoin succeed where other cryptocurrency coins have struggled.

For those interested in using Dogecoin as a payment option – BongaCams offers wide array of helpful resources and exchange services with instructions on how to easily purchase Dogecoin online.
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Source: https://www.livebitcoinnews.com/webcams-site-bongacams-becomes-next-major-player-to-accept-dogecoin/>

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XRP, EOS, Chainlink Price Analysis: 20 September

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Broader crypto market sentiments remained quite bearish over the last 24 hours. The likes of XRP, EOS and Chainlink registered substantial losses.

XRP was trading below a dollar’s mark after over a month’s time. EOS lost 15.4% of its valuation and inched closer to its immediate support level. Lastly, Chainlink declined by 13.5% and was oversold after a gap of multiple months in between. 

XRP

XRP, EOS and Chainlink Price Analysis: 20 September

XRP/USD, TradingView

XRP depreciated 14.6% over the last 24 hours and was trading at $0.90. Immediate support level for the coin was at $0.77. 

Technical outlook suggested negative price action. MACD displayed red bars on the histograms. The Relative Strength Index was near the 20-mark indicating that XRP was oversold. Bollinger Bands diverged, suggesting that price volatility might be on the rise.

Conversely, if XRP’s buying pressure finds its way back, then the first resistance point stands at $1.06. Other price ceilings awaited the alt at $1.20 and $1.31 respectively. 

EOS

XRP, EOS and Chainlink Price Analysis: 20 September

EOS/USD, TradingView

EOS recorded a 15.4% fall over the last 24 hours and was trading at $4.26. The token had last traded around this price level over a month ago. A dip below the current price level could push EOS to trade at $3.90 support line. 

On the four-hour chart, the price of EOS was below the 20-SMA line. This reading meant that momentum belonged with the sellers. The Relative Strength Index was positioned inside the oversold territory.

Chaikin Money Flow was below the half-line as capital inflows also declined. MACD displayed red bars on the histogram. On the flipside, the first resistance mark for the coin was at $4.54. Additional price ceilings were at $5.10 and $5.48. 

Chainlink (LINK)

XRP, EOS and Chainlink Price Analysis: 20 September

LINK/USD, TradingView

Chainlink was priced at $24.07 after it plunged by 13.5% over the last 24 hours. Immediate support line was at $22.50, a price level it last touched on 11 August. The price of LINK was seen below the four-hour 20-SMA, indicating that price momentum belonged to the sellers. 

The Relative Strength Index was on a multi-month low. It was parked near the 20-mark signifying an oversold state. Awesome Oscillator displayed red signal bars. MACD flashed red bars on the histogram. 

In the event of a price reversal, LINK’s immediate resistance was at $27.78. Other resistance lines awaited LINK at $32.37 and $35.83.

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Source: https://ambcrypto.com/xrp-eos-chainlink-price-analysis-20-september

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