Tether is a stablecoin, backed by fiat currency and thus not as volatile as bitcoin or ether
The world of cryptocurrency is unpredictable to a large extent. But that does not mean that it is completely chaotic. The cryptocurrency market, too, follows a pattern that can be studied to make future predictions. Usually, Bitcoin is at the centre of all speculation. Bitcoin (BTC) is a decentralised digital currency that has become the face of cryptocurrency to many investors. However, Bitcoin often shares its spotlight with altcoins like Ether (ETH) and stable coins like Tether (USDT). Recent competitive trends among these three digital currencies have led to speculations that Ether and Tether may soon outpace Bitcoin.
What is Ether?
Ether is the biggest of Bitcoin alternatives in the market. This altcoin ranks second according to market capitalisation. Ether’s current price is around Rs. 2.19 lakh. Ether has consistently maintained its position as the strongest competitor of Bitcoin.
Can it outpace Bitcoin?
Pantera Capital CEO, Dan Morehead, has reportedly predicted that Ether would soon outpace Bitcoin. Ether’s upcoming upgrade to Ether 2.0 (ETH2) is raising many eyebrows. This upgrade ensures better features on its blockchain.
According to Ethereum’s website, the purpose of this upgrade is to make Ether more scalable, more secure and more sustainable in relation to our environment. It will also introduce a minimum payment for transactions. Because of this reason, ETH2 could get more takers who are interested in storing their crypto coins in better ways.
What is Tether?
Tether is what we call a stablecoin. Stablecoins are backed by fiat currency and are, therefore, not as volatile as Bitcoin or altcoins like Ether. Tether is the strongest stablecoin in the crypto world and currently ranks fourth according to market capital at Rs. 100 billion. Its price is much lower than Bitcoin and Ether at Rs 73.57 at the time of writing. It is based on Ethereum’s blockchain.
Can it outpace Bitcoin?
Tether has outpaced Bitcoin in the past. In December 2020, Tether came to the forefront when it overtook Bitcoin as the most traded crypto coin in the world. Bitcoin still remains the largest player due to its market capitalisation. But Bitcoin and Ether cannot beat Tether when it comes to stability. Tether’s fiat currency support ensures many takers a sense of security. We won’t be surprised if it overtook Bitcoin once again.
