With the presence of US dollar-valued stablecoins has long made transactions easy on the crypto market. Because the value is stable, it is useful for "safeguarding the value of funds" for users, including making it easier to transfer funds across countries with lower sending costs than using bank services or Western Union. In crypto exchanges in Indonesia, for example USDT can be exchanged into rupiah currency and vice versa. Of the many stablecoins currently available, Tether (USDT), which has been in existence since 2014, is the largest at this time, as USDT is widely used on a number of crypto exchanges around the world.
The short name for USDT is Tether, which refers to the Hong Kong-based company Tether Limited. USDT itself stands for United States Dollar Tether, where the value of 1 unit of USDT is equivalent to the value of 1 US dollar and can be exchanged for fiat money including rupiah. m in the case of genuine US dollars or other physical assets equivalent to the value of US dollars), which are owned and held by the company Tether Limited. With the number of USDT units in use so widely it is now "believed" to be the same amount as real dollars. This is what is known as a collateral asset.
You may ask, why did the original US dollar currency have a "digital token" in the form of USDT? The answer is to make money transfers across countries easier, because they no longer use the regular bank transfer system. Using USDT is much cheaper to send, especially for sending very large amounts of funds between different countries.
"In general, of course, it is clear that it will be easier and faster to use USDT. When it comes to costs it depends on the context. Banks can be cheaper in some ways, such as transfers between similar banks or domestic transfers. However, if you transfer abroad or to another bank abroad, banking services are much more expensive than using USDT
For example, the shipping fee is only 2-5 USDT, depending on the crypto exchange you use. Regardless of the amount of funds you want to transfer and wherever you want to transfer, the fee is still 5 USDT. So, if you want to send 10,000 USDT, the transfer fee is still 5 USDT. Referring to the current exchange rate, 5 USDT is roughly equivalent to IDR 72,257.0, approximately.
Tether is a blockchain-based cryptocurrency whose circulation is supported by an amount equivalent to traditional fiat currencies, such as dollars, euros, and yen which are deposited in designated bank accounts. The Tether token, the Tether network's native token, is traded under the USDT symbol.
Tether belongs to a new type of cryptocurrency called stablecoin which aims to keep cryptocurrency valuations stable, as opposed to the large changes observed from the prices of popular cryptocurrencies such as Bitcoin and Ethereum.
USDT is actually a digital token created using blockchain technology to represent fiat money (in this case real US dollars or other physical assets equivalent to the value of US dollars), which is owned and held by the company Tether Limited. With USDT in widespread use today. This is what is known as a collateral asset.
Tether is specifically included in the stablecoin category that is guaranteed by fiat currencies. Other categories of stablecoins are crypto-guaranteed stablecoins (using a cryptocurrency reserve as collateral), or there are also unsecured stablecoins (they do not have any collateral, but operate in a similar way to a reserve bank to maintain a certain supply of tokens, depending on the economic situation).
Based on data from Coinmarketcap.com, USDT is currently the most used stablecoin in the crypto market today. On Coinmarketcap.com, USDT is in 7th place, with a capitalization of US $ 4 billion. With its 24-hour trading volume of US $ 17 billion, this reflects the “very fast” USDT circulation across around 400 crypto exchanges across
That's all from me @fikar1213, hopefully it can increase our knowledge. Thank you.
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Hi @fikar1213
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
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This is excellent work. Well done with your research on Tether. It's an interesting read. Well explained.
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Thank you professor @yohan2on for the support. I am happy to be able to enter this contest to the best of my ability.
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