Why is USDT called a stable coin?

[Niyi Briggs]

I overheard someone demanding for payment in crypto. And the person said that the payment should be made on USDT because it is a stable coin.

I didn't understand why it is a stable coin. Feel free to share please.

 

[IB D]

That coins is called a stable coin because it tethers itself with the dollar. That's why it always assumes the value of the dollar at all times.

 

[uptrendfinancialsignal]

It is called a stable coin because it's value is pegged tothe dollar and it value hover around the dollar.

 

[Reedex]

Usdt is called a stablecoin because its value is pegged against the dollar.

 

[riberet19]

Easily, all tokens that are pegged to a fiat currency and have a strong peg are called stable because they follow that value and are not volatile, that is why that name

 

[jetsaints30]

I overheard someone demanding for payment in crypto. And the person said that the payment should be made on USDT because it is a stable coin.

I didn't understand why it is a stable coin. Feel free to share please.

USDT is a stable coin because it tries to maintain a constant value relative to the US dollar. It does that by backing each USDT with an equivalent amount of dollars in reserve.

 

[Niyi Briggs]

USDT is a stable coin because it tries to maintain a constant value relative to the US dollar. It does that by backing each USDT with an equivalent amount of dollars in reserve.

That's true. It is the reason Trendri likes paying their users with USDT. That's because even if the market dips as soon as your payments enter, it won't affect it so much because it is a stable coin.

 

[Suba]

USDT is a token that runs on the Ethereum blockchain, according to Coinmarketcap the current price of USDT is $1. USDT is one of the stablecoins because for every 1 USDT issued it will be guaranteed/pegged with 1USD.

 

[Niyi Briggs]

So why then do all these online sites that pay users not adopt USDT? I think that should be the crypto coin of choice. They rather prefer to pay in BCH,. Litecoin and other unstable coins.

 

[jetsaints30]

That's true. It is the reason Trendri likes paying their users with USDT. That's because even if the market dips as soon as your payments enter, it won't affect it so much because it is a stable coin.

Yeah youre right. USDT is awesome because it doesnt change its price when the crypto market goes up or down. Its like having money in your crypto account without worrying about exchange rates.

 

[Niyi Briggs]

Yeah youre right. USDT is awesome because it doesnt change its price when the crypto market goes up or down. Its like having money in your crypto account without worrying about exchange rates.

The bad part of it is that you can't be holding stable coins as investments. That's because no matter how the market experiences a bullish run, it's value would still remain the same.

 

[gammarays]

It is called stable coins because it's pegged to the real USD. The company has real USD backing each token in circulation 1:1. It retains it's value no matter what happens.

 

[uptrendfinancialsignal]

It is called stable coins because it's pegged to the real USD. The company has real USD backing each token in circulation 1:1. It retains it's value no matter what happens.

It is true that the value of USDT is pegged to the dollar and that is why it is called the stablecoin.