What is the difference between USDT and Bitcoin?

Differences: 1. Different value stability: Bitcoin is a highly volatile cryptocurrency, and its price can change significantly in a short period of time, while USDT, as a stable currency, maintains its value with A fixed ratio for a specific fiat currency, so it is relatively stable in price; 2. Decentralization is different from centralization: Bitcoin is a decentralized cryptocurrency, while USDT is a centralized stable currency; 3. Issuance Volume is different from supply: the supply of Bitcoin is limited, only 21 million, while the supply of USDT changes dynamically based on market demand, etc.

USDT and Bitcoin differ significantly in multiple aspects:

1. Value Stability: Bitcoin is a highly volatile cryptocurrency and its price can change significantly in short periods of time. This is due to factors such as Bitcoin’s supply and demand and market sentiment. As a stable currency, USDT maintains a fixed ratio of value to a specific legal currency, so it is relatively stable in price and is more suitable for use as a value store and transaction medium.

2. Decentralization and centralization: Bitcoin is a decentralized cryptocurrency whose transaction records are stored in a distributed blockchain network without central authority control . USDT is a centralized stable currency that is issued and managed by Tether. The company retains a certain amount of U.S. dollar reserves to support the value of USDT.

3. Issuance and supply: The supply of Bitcoin is limited, only 21 million, while the supply of USDT changes dynamically based on market demand.

4. Circulation: Bitcoin is a digital currency whose liquidity is limited by the coverage of the network. USD is a physical currency that circulates around the world, so it is more easily accepted.

5. Legal status: Bitcoin has not yet obtained legal currency status in many countries, while USDT has obtained legal currency status in some countries.

To sum up, there are significant differences between USDT and Bitcoin in terms of stability, decentralization and centralization, issuance and supply, liquidity and legal status. These differences make the two have their own advantages and disadvantages in application scenarios and functions.

The above is the detailed content of What is the difference between USDT and Bitcoin?. For more information, please follow other related articles on the PHP Chinese website!