USDT: The Stablecoin that Revolutionized the Crypto Market

USDT, known as Tether, is the most widely used stablecoin in the entire crypto landscape. Unlike Bitcoin or Ethereum that are always dancing up and down like crazy, USDT tries to maintain a fixed value of one US dollar. I personally see it as that reliable buddy who is always there when you need stability in the midst of chaos.

When I first entered this world, USDT was my lifeline. I remember perfectly how my first Bitcoins went up and down leaving me anxious, while my USDT remained steady at one dollar... well, almost always. Because let's be honest, even this currency has had its moments of panic.

What the heck is USDT really?

USDT is basically digital money that is supposed to be worth exactly one dollar. The company behind it, Tether Limited, allegedly holds one real dollar for each token it issues. I say "allegedly" because, come on, who has really seen those full reserves? That is precisely one of the big debates surrounding this currency.

Tether originally appeared as "RealCoin" in 2014 (a rather shabby name if you ask me) before transforming into what we know today. And although many people are distrustful, the truth is that it has withstood crisis after crisis and remains the undisputed king of stablecoins with approximately 70% market dominance.

How it actually works

The mechanism is simple in theory: you deposit dollars, receive USDT, want your dollars back, return your USDT. But let's be frank, few users actually make direct redemptions with Tether. Most of us simply exchange USDT for other cryptos on the platforms where we operate.

The interesting thing is that USDT is available on various blockchains:

• The old Omni network on Bitcoin ( is slow and expensive, almost nobody uses it anymore )
• ERC-20 on Ethereum ( also expensive but very used )
• TRC-20 on Tron (my personal favorite, fast and super cheap)
• SPL on Solana (very fast but less adopted)

I have mainly used TRC-20 because I refuse to pay those absurd Ethereum fees just to move my money.

Why Everyone Uses USDT

USDT has become the blood that runs through the veins of the crypto ecosystem. With over 100 billion in circulation and about 350 million users according to reports, it is impossible to ignore its importance.

For me, the best thing about USDT is being able to quickly jump out of the market when I see a crash coming. Selling my altcoins for USDT is much faster than trying to convert everything to fiat money and then re-entering. It has also saved me when I've wanted to send money internationally without dealing with dinosaur banks and their endless waiting times.

The problems that no one wants to see

Look, let's be honest: Tether has its dark side. In 2021 they paid a fine of 41 million dollars for lying about their reserves. And then there's the settlement of 18.5 million with the New York attorney general. They are not exactly the epitome of transparency.

I am especially concerned about that change in their narrative regarding the reserves. At first it was "we have one dollar for every USDT", then it changed to "we have equivalent assets". What does that exactly mean? Commercial papers from Chinese companies that no one knows? Loans to related entities? I don't know, and that worries me every time I hold large amounts in USDT for a long time.

If USDT were to collapse... my goodness, it would be a tsunami for the entire crypto market. It is too big to fall without taking everything down with it.

Is it worth using USDT?

Despite everything, I still use USDT almost daily. It's practical, it's everywhere, and it serves its purpose. But I don't leave large amounts there for long, and I always have it diversified in other stablecoins like USDC that seem more transparent.

For those who want to get started, almost any platform allows you to trade with USDT easily. Just always remember to check which blockchain network you are using to send or receive ( a mix-up between ERC-20 and TRC-20 could cost you your funds ).

In summary, USDT is like that somewhat suspicious but tremendously useful neighbor. You wouldn't trust him to hold the keys to your house, but when you need urgent help, he is always there. In this wild market, having a stable value to cling to is essential, even if that value comes with a backpack of doubts on its back.

As long as regulators do not decide to deliver the final blow, USDT will continue to be the king of stablecoins, whether we like it or not.