What Is Tethercoin?

Tethercoin, one of the several stablecoins available for trade, differs from other cryptocoins in that Tethercoin has it’s value linked to fiat currency almost exclusively. Tethercoin is relatively less volatile than other coins out there hence the classification of “stablecoin”. But what does that mean for you the crytpo trader? Today we are going to look at a brief overview and we are going to ask our Crypto Advisement team on how they look at Tethercoin as a short term, long term, and flipping strategy.

What Is Tethercoin?

Tethercoin (USDT) is backed by fiat currency and is block chain based, Tethercoin does not see astronomical losses but in contrast, it also does not show astronomical gains either. Investing in Tethercoin is seen by many traders as a way to mitigate loss and hedge against other speculative trades. It’s kind of like the emergency fund for your household OR like buying bonds or Certificates of Deposit. You won’t even make a ton of money off of it, but you also won’t lose a ton of money either (well, except for that whole rapid hyperinflation thing but I’ll leave that for another discussion).

What Backs Tethercoin?

While other cryptocoins like Bitcoin and Ethereum are backed by computer based blockchain mining and algorithms, Tethercoin is backed by fiat currencies, i.e. that are issued by central governments such as the U.S. Dollar and the Euro.

But then we have to look at what backs those fiat currencies?

That’s right . . . nothing. Nothing backs fiat currencies except the belief that they are worth something. Which essentially means if fiat currency is devalued or rendered worthless . . . or worse absolete as we are seeing happen in countries like Myanmar today . . . your Tethercoin could also be worth nothing.

However, if fiat currencies maintain their hold on the markets, your Tethercoin will enjoy a long term, vanilla pace with inflation. Meaning your Tethercoin although it may increase in value will NOT increase in buying power which is what you are actually looking for when investing.

Tethercoin And It’s Relation To The US Dollar

Tethercoin is linked to the US Dollar. 1 Tethercoin = 1 US Dollar. One of the only ways I as an investor can see Tethercoin being lucrative is if you are also blending Forex Trading with Tethercoin investment. And that is a big reach.

Should You Invest In Tethercoin?

As always, I consult my team of crypto advisors who all have the distinction of being in the top 10% for crypto investment returns in the United States. Everyone should have them, but since not everyone does, they will be acting as your advisors here.

Tethercoin Short Term:

N.N.N.: No

M.S.D.: No

G.T.: No

Tethercoin Long Term:

N.N.N.: Only for the trader who wants to watch their coins go to nothing.

M.S.D.: No

G.T.: No, a better investment for someone with low ability to stand volatility would be dividend stocks.

Tethercoin To Flip:

N.N.N.: Hell no

M.S.D.: Fuck no.

G.T.: Absolutely not.

My Final Thoughts:

While I do see what Tethercoin is trying to do . . . much like I do not recommend investing into Certificates of Deposit or Bonds for the retail investor, I also cannot recommend the purchase of Tethercoin. If you are holding Tethercoin, I advise you to sell it and put that money into other coins that will provide a better long term return, that have a better chance of outpacing inflation, OR investing into a nice dividend stock like Coca-Cola or Kimberly Clark.