Bitcoin is regarded as the father of cryptocurrencies. Not only is it the first-ever cryptocurrency in the word, but also the strongest, at least by most metrics. One of the strongest metric of Bitcoin is its price. At the time of press, it stands just above $8K. At the height of its power, Bitcoin was reaching $20K. No other cryptocurrency has managed to reach these levels. Because of its adoption and high price, it is no surprise that it also has the highest market cap.
Surprising despite being this strong, Bitcoin is not the most used cryptocurrency. In fact, the most used cryptocurrency comes as a surprise to many. Tether is the most used cryptocurrency. And this tells us something about cryptocurrency investors. For one, since Tether is a stable coin, they are afraid of the market’s volatility. Stable coins are designed to avoid price fluctuations using pegs and reserves. For Tether, it uses reserves and claims to have every token backed by a USD in reserve.
At the time of press, Tether is recording a daily trading volume of over $19 billion. Bitcoin, on the other hand, is recording a trading volume of just over $15 billion. As I reported earlier, Tether has also been doing well in terms of rank. It had climbed to 4th place after a price crash at the end of August. Since the market has improved in October, Tether has been falling back but still maintains the 4th position.
Tether Used By Traders Unknowingly
According to data from Coin Metrics, Asians account for most trading with Tether and the wider market at large. Asians account for 70% of cryptocurrency trading. For many, they trade Tether for Bitcoin and other cryptocurrencies, seeing Tether trading reach higher numbers than all other cryptocurrencies. Data has shown that in Binance and Huobi, Tether was used in 40% and 80% of all transactions respectively.
It is, however, important to note that most traders who use Tether do not know they do. Tether is used by many exchanges. The exchanges use Tether instead of having dollars in a bank account. This means that while their clients think that they own dollars in a bank, they actually hold Tether coins.
Is It A Cryptocurrency?
Tether despite being listed as a cryptocurrency, contradicts the whole principle. By being issued and controlled by a Hong Kong-based private company, it falls out of line with the principle of being decentralized, which cryptos should be. And can’t the same be said about Ripple?
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