Bitcoin was created in order to have an alternative currency to traditional or fiat currencies. Bitcoin is peer-to-peer, borderless, and does not depend on any national bodies or financial institutions in order to operate. Tether, however, is not a rival currency of Bitcoin. While Bitcoin is used to send money over the internet from anywhere in the world, Tether was created in order to integrate cryptocurrencies with fiat currencies such as Bitcoin. Tether does this by claiming that all their digital assets (USDT) can be converted into physical cash (USD) in a 1:1 ratio.
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