Cryptocurrency Q&A
Why USDT is not equal to USD?
Why USDT is not equal to USD?
Stefano
Mon Oct 28 2024
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7 answers
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I'm confused about the difference between USDT and USD. I understand that they should be equivalent, but why is it that in the cryptocurrency market, USDT's value is not always the same as USD? What factors cause this discrepancy?
7 answers
Sara
Wed Oct 30 2024
Instead, it operates as a derivative of the US dollar, meaning its value can vary.
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Bianca
Wed Oct 30 2024
The reason why Tether (USDT) is not always equivalent to 1 USD lies in its fundamental nature.
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Leonardo
Wed Oct 30 2024
Despite being partially backed by dollar-reserves, Tether is not fixed at a value of 1 USD.
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CryptoPioneer
Tue Oct 29 2024
Counterparty risk refers to the possibility that the issuer of Tether may not be able to fully redeem it for USD.
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BlockchainEmpiress
Tue Oct 29 2024
These variations are usually minimal and based on the principles of supply and demand.
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