The World’s Most Used Cryptocurrency – An Analysis
You may be thinking that the world’s most used cryptocurrency is the Bitcoin, but the truth is that it is actually Tether. Bitcoin continues to hold the position of the world’s most popular cryptocurrency and accounts for almost 70% of total digital assets in the world in terms of market value. According to research and analysis Tether is possibly the most used crypto coin for many months now because its monthly and daily trade volumes have shot past those of the Bitcoin.
Tether’s market cap is almost 30 times lesser than the Bitcoin but its trading volumes have surpassed those of Bitcoins. Since the trading volume is nearly 18% higher than Bitcoin trade volume, it is perhaps the most significant token currently in the crypto world. Regulators have also started to eye other crypto coins with skepticism because of Tether’s recent performance. Authorities have started to apply brakes on cryptoexchange traded money because of fears of price manipulations.
Tether is now the most widely used stable coin; a stable coin is a token that tries to stay away from price manipulations through reserves. These stable coins also offer active traders a good opportunity to enter the crypto market. You can get Tether by paying cash across the counter and you will be asked very few questions in return. Interestingly, you will find Tether in countries like China that may have banned other crypto coins. So, traders here can trade Tethers in exchange for Bitcoins and other coins.
The downside of using Tether is that one does not know the exact system that controls the decrease and increase of Tether supplies. You cannot know how much of this supply has been covered by fiat money reserves as there is no independent audit for Tether. It had been disclosed by Tether advocates that almost 74% of the coins were covered by short-term securities and cash while the original claims had been that of 100% cash reserves. This disclosure came about when the NY Attorney General started an investigation into this stable coin because it was alleged that companies supporting Tether were trying to cover up insurmountable losses.
Since Tether is under control of centralized parties the whole aim of having a blockchain or decentralized crypto coins is defeated. Stable coins may be avoiding government control but they are putting trust into hands of the big tech companies and their accountability is not completely genuine. So, theoretically, Tether may be the safest option but it is risky and can be abused. The problems emerging as a result would be almost the same as those faced by traditional fiat currencies.
At the same time, Tether is required for crypto exchanges to grow and they continue to support it to stay afloat. So, out of all the stable coins that have hitherto come and gone, Tether has been the best. However, Bitcoin remains the most popular of all cryptocurrencies because it is decentralized and there is no involvement of any third party like a financial institution or a government.