What Is Tether: Explaining USDT, EURT and JPYT In Detail
Tether is a cryptocurrency which acts as a hybrid. Officially, it is designed to be a crypto-fiat “stablecoin” which value is pegged – or rather – tethered – to the value of fiat currencies. In this manner, USDT is a currency that Tether most frequently uses – and one that is equal to the world’s official reserve currency which is the US Dollar.
More specifically, one USDT is intended to remain exactly equal to $1 (without a cent more or less). So, the best way to explain what USDT is – is as a version of the US Dollar in the crypto world. Or better yet, a crypto dollar in terms of its value.
Another currency that Tether uses is the EURT, which just like USDT is to the US Dollar, is a crypto Euro for the Euro cryptocurrency. As Tether recently announced, there will also be a JPYT cryptocurrency coming soon – acting as the cryptocurrency “brother” of the Japanese Yen.
Tether users are protected from the volatility of cryptocurrency. However, they are still exposed to fluctuations in the price of the pegged fiat currency. For example, if the US dollar’s value halves overnight, holding Tether (USDT) would lose an equal amount of value as the USD.