/biz/ - Business & Finance

Jesus the economic illiteracy of Americans explains to me how our bullshit system never has been fixed, we deserve the mess we have.

The value of bitcoin as a speculative asset is different from it's perceived value as a system of barter. Forget market cap, it's meaningless. Tether creates liquidity and therefore a higher perceived value by closely pairing it's liquidity risk to the dollar. It's undoubtedly not a perfect 1:1, but the reduction in beta by creating ease of liquidation allows BTC to function almost as a treasury bond in theory, where its systemic risk is perceived to be vastly reduced due to tether simply existing.

Additionally, once you realize that by having a liquid, securitized currency floating along the dollar; combined with the fact people are ignorant to how this system operates on the network level; and the connection is not made between crypto as a derivative assets with USD acting as the underlying; I hope some of you can see what will happen if there is a way to counterfeit the USD using a method similar to how the Fed printed money in QE without flooding the circulating supply by raising market values through purchases; thus increasing the equity of the asset owner and countering insolvency by the conversion of liquid wealth to illiquid wealth.

I hope someone see what this means for us over the next few years, and why those that do understand are getting mortgages to buy BTC.