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Peer Review: “Bitcoin is Going To Suffer a Vicious & Painful Death”

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Part 1: The Premise.

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Part 2: The Evidence

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  1. USDT is bought with Bitcoin, to buy USDT, you (generally speaking) must already own Bitcoin, people don’t buy USDT to buy Bitcoin, that would be unnecessary, they buy Bitcoin and trade it for USDT (or a selection of other stable-coins) as and when they please. Therefore, mentioning 96% of USDT is not backed by dollars only speaks to the fact that BTC is in demand, since USDT market cap is a proxy for gauging interest in BTC (so his second bear case is also accidentally a bull case).
  2. BTC is not Tether. The argument of a potential liquidity crisis caused by USDT being cause for concern of a price drop ‘up to 80%’ is a legitimate one, but Bitcoin does that every 4 years, and on average it is still up 200% year on year, so again, this is more of an argument for a potential short term crash in the price of BTC, rather than the slow and painful long term demise of the underlying asset price, or whatever he said.
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