Why Is USDT (Tether) Not a Volatile Cryptocurrency?

[Good-Guy]

USDT (Tether coin) is one of the most famous coins but still not known by some of the people. Tether cryptocurrency is a coin that is not at all volatile and its value remain fixed at $1. The it only changes in a minor way but still comes back to its original price after sometime. For example, the price of tether might fluctuate to $0.99; however, it only takes a few minutes to get back to $1. So the price is fixed. However, I really do not know what makes Tether non-volatile cryptocurrency? Why is it the only cryptocurrency that remains constant and does not change at all. Does it has something to do with USD? Kindly please do share why is it so non-volatile. Thanks!

 

[Sotherefore]

I do not expect that from usdt because it is a stable cryptocurrency in some exchanges in the cryptosystem it is recognised as the US dollars because sometimes the exchange rate of a country is always the same as the usdt, it is a stable coin. There is the characteristics of a stable coin

 

[lesnik_utsa]

A lot of coins are stablecoins and they are used on many blockchains. It happens that their price deviates by 1-2 percent - but this is the maximum that we can see. If Xs are needed, then these are not stablecoins

 

[btaliat]

It is not tether that it is a stable coin. We still have some other stable coins. The reason for all these stable coins is that to stop loss for some cryptocurrencies users. For instance, a crypto user who is not sure of the event that may happen next can convert his coins to some stable coins.

 

[Ahmedo24]

Tether which is fondly called USDT is a stable coin and that alone should tell you that it can't fluctuate and it is programmed to be a kind of safe zone for traders or investors when they are retiring from trading activities or mining activities and you should note that without stablecoins like this cryptocurrency world may have not grown as it is now because in terms of market dip investors or traders dqo look for ways to reserve or conserve their wealth which are the stable coins .

 

[Jasz]

One of the biggest selling points of USDT is that it is a stable currency. It is not supposed to be volatile, like other cryptocurrencies. It is pegged to the dollar and meant to be used by traders as a reliable store of value when they are trading.

The reason why USDT (also known as Tether) is not volatile is because it has been designed not to be volatile. The developers behind Tether have created a system that allows them to issue new tokens only when they have the corresponding amount of dollars in their bank account. Because of this, each USDT token always has an equivalent dollar backing it.

This also means that if someone were to send their USDT tokens to another individual, that person would receive the exact amount in dollars that had been in their account before the transaction took place - there would be no loss from fluctuating prices caused by supply-and-demand dynamics affecting USDT's price relative to other currencies like Bitcoin or Ethereum.

The fact that Tether isn't volatile doesn't mean it's better or worse than other cryptocurrencies; it just means it has different uses than those coins do."

 

[Hooligan]

Because it is a stable coin. It isn’t the only one, but it is one of them. A stable coin is defined as a coin that doesn’t change or fluctuate, and has the same rate of exchange. This is because it has a set rate, and cannot be knocked up or down from its peg, since they are attached to a commodity. Some stable coins are DAI, USDC, USDT, etc.

 

[Ponmo]

USDT tether is a stable coin, meaning that as a cryptocurrency, it cannot fluctuate. The reason behind its stability is that the number of tokens available in circulation is supported by an equivalent amount of US dollars. So, that is the reason behind why it isn’t a volatile currency. It literally cannot be because of how it is designed.