Most cryptocurrencies have two significant disadvantages:

The first is the lack of real assets.

The second is exchange rate volatility.

Cryptocurrency tether usdt solves both problems. According to Tether, USDT is backed by US dollars at a ratio of 1 to 1.

This allows you to trade on cryptocurrency exchanges as a substitute for the US dollar with low commissions and almost instantly.

What would happen if USDT didn't exist? Let's say you want to buy dollars for cryptocurrency on the exchange. To do this, you would have to withdraw the cryptocurrency from the exchange to the exchange office. And then wait for the exchange to happen. This would take several hours. And it would take a few percent of the funds to pay commissions.

Let's figure out how the emission occurs, relatively speaking, "mining" USDT. When you transfer $1 to Tezer, they issue 1 USDT and transfer it to you. Conversely, when you transfer 1 USDT to them, they send 1 dollar to your account.

As stated earlier, USDT solves two problems of cryptocurrencies: asset backing and volatility. But at the same time, new problems are born:

1. The first problem is security itself. No one knows whether 1 usdt is actually stored in the bank account of the tezer company for one usdt. Checks by independent experts could clarify this issue. To date, an attempt has been made to check, but the results do not allow us to verify that there is sufficient collateral.

2. The next problem is centralization. The tezer company manages the main processes, namely the issuance of new USDT and the storage of collateral dollars. This carries the risk of the termination of the existence of the enterprise by government agencies in case of conflicts.

3. Lack of communication is also a problem for Tezer. The connection between the Tezer company and the Bitfinex cryptocurrency exchange was hidden.

But the fall in the USDT rate in April 17 and the leak of the Paradise Papers documents indirectly indicated their connection. To date, the connection between Tezer and Bitfinex is officially recognized. This is important, as it shows Tezer's tendency to hide significant facts.

4. The lack of control over the release of USDT also raises questions. In January 2018, the number of USDTs issued doubled. We do not know if this was due to increased demand for USDT or if it was an issue of unsecured candy wrappers. Tezer's lack of communication and lack of peer review makes it impossible to know the truth.

5. And the last item on my list. From the terms of use (terms of service) of USDT, we see that from January 1, 2018, US residents are not allowed to buy USDT on the official website, and residents of individual states are completely prohibited from owning USDT. Will all said US residents strictly follow the rules, or will Tezer be in trouble with the US government? Sooner or later we will know for sure.

Let's make a conclusion.

USDT is an incredibly convenient tool for using within the framework of cryptocurrency exchanges. Tezer has done a lot of work to maintain the USDT course since 2015. But USDT has many critics, some of whom call tezer a scam - or, as the professionals say, a "scam".

But is it possible to make a similar tool without these drawbacks? Is it possible to keep it running all these years in the same way that the tezer team does? If anyone can make a similar tool without these shortcomings, I will be one of the first to use it.

In the meantime, we will, if necessary, use USDT with an understanding of the risks. And, of course, we will only keep funds in USDT that we can afford to lose.

All successful investments.