Tether (USDT) : A Stable Coin

Tether belongs to a new breed of cryptocurrencies called stablecoins that aims to keep cryptocurrency valuations stable, as opposed to the wide swings observed in the prices of other popular cryptocurrencies like Bitcoin and Ethereum. That would allow it to be used as a medium of exchange and a mode of storage of value, instead of being used as a medium of speculative investments.

It is a cryptocurrency released on the Bitcoin blockchain through Protocol Omni. Its value is exchange rate is fixed or tethered, to the value of the US dollar.The only reason why 1 USDT is actually worth $1 USD is that exchanges keep a reserve of USD to back every USDT in existence. 

USDT can be spent, traded, or transferred, like Bitcoins or any cryptocurrency. They can also be stored in specialized wallets that are Omni compatible.

Why Invest in Tether?

If Tether is tied to fiat (national currency) and over time currencies naturally erode their buying power due to inflation.

Transaction times – USD deposits and withdrawals often take 1-4 business days to complete in a traditional banking system. If a transaction has occurred at night or weekends when the bank is closed it could be longer.Tether transaction time take place in minutes which is a boon for cryptocurrency traders who often want to rapidly trade in minutes not days.
Transaction fees – SWIFT (Society for Worldwide International Financial Telecommunication) transfers are expensive at $20-$30+. 

Especially if you are using a fiat that is not supported by the exchange because you are then adding a fee for Cryptocurrency conversion and a percentage on the transfer. Tether charges zero transaction fees between Tether wallets.

Price Stability – Cryptocurrencies are volatile when you want to purchase them buy with Tether, not another currency. Currencies are not stable enough as assets.Many exchanges do not take fiat but will take Tether.