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I think you underestimate demand massively. If bitcoin price ever starts to drop precipitously, it will be scooped up by a mass of buyers who have a ton of mon
by liquidify 6y ago
I think you underestimate demand massively. If bitcoin price ever starts to drop precipitously, it will be scooped up by a mass of buyers who have a ton of money to blow and a lot of interest in maintaining price. The only thing that could cause a real collapse to sub 4 digits is if something went wrong in the actual protocol or some unforeseen exploit occurred that affected the system in a way that was unrecoverable. If the cryptography and incentive systems continue to function, the price will probably never approach 4 digits again even if Tether blows up (which it probably will).
- JumpCrisscross 6y ago> The only thing that could cause a real collapse to sub 4 digits Only thing? I agree that Tether’s collapse won’t be the end of Bitcoin. But if Tether collapses amid a real recession, i.e. one where incomes fall, that potential demand may not be able to act on its impulses. And note that Tether’s collapse and such a recession are correlated.
- dash2 6y agoThe logic here is that many people will buy a crashing asset because, if they all cooperate, they can keep the price up. That seems highly unlikely. You can't just will away a bad equilibrium or a collective action problem.
- cecida 6y agoI think this gets to the crux of it. Tether/iFinex isn't just a bad player, it's a bad player that has become the plumbing of the crypto space.