What the Hell is the deal with tether?

Tether is a controversial cryptocurrency with tokens issued by Tether Limited. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies.

What is tether and how does it work?

Tether is designed as a stablecoin — cryptos that are pegged to real-life assets or commodities to ensure stability in value and lower volatility in the market. Stablecoins can be pegged to real-life currencies such as the US Dollar, the Euro, the Swiss franc, or precious commodities such as metals. In Tether’s case, it is pegged to the US Dollar.

What does the word "tether" mean?

to confine, as an animal, with a long rope or chain, as for feeding within certain limits A tether is a cord, fixture, or signal that anchors something movable to a reference point which may be fixed or moving.

Is tether safe to use?

Using non-stable crypto currencies introduces exchange rate risk in transfers, therefore Tether can be seen as a safer way to complete short term funds transfers. The risk is that if Tether’s price suddenly collapses, those transfers could fail.