First off, I would say that moving to anything resembling the following practices will result in the decline of scarcity in bitcoin and ruin the market value after this impending bull run:
- USDT:
USD Tether (a stable coin in crypto world) is supposed to be pegged to $1 at all times. In theory, it's a great way to avoid huge swings in volatility. The issue is a time ago, they changed their statement from all USDT was back by $1 of real world currency at any time. To its new statement which basically reads that it is now backed by less than a dollar. This sparking a huge controversy about over printing the supply or straight up printing more than you have to control markets for short/long periods of time. Basically anything involving manipulating the markets to better themselves and their "cartel."
UPDATE: We are waiting for the law to pass a decision on USDT. If they are deemed unlawful or a scam. We could see the markets plummet indefinitely due to the fact that tether props up A VERY HUGE PERCENTAGE of the markets in the first place. Also on a coin flip, letting them continue printing whenever they feel like it is just as bad in the long as well.
- Fractional Reserve and Bitcoin:
If bitcoin was to be fractional reserved and lent accordingly, we could end up with a total supply so bogus that it will actually put an end to scarcity entirely. This could allow the government(s) full control over the whole crypto ecosystem. All the alt coins would be at Bitcoins demise if they could choose to add more or take away at any time. This would cause alts to crash and lose massive value that they gain while bitcoin is "forever" growing (Satoshi's plan to help stop financial tyranny.)
Add that in with future markets (looking at you oil) and you could see bitcoin being tamed but only let loose with volatility when the government felt like it. Then they can claim its just crypto and it's volatile. Not a fun road to go down because. . . THIS IS HOW WE GOT TO WHERE WE ALL ARE TODAY! Look up fractional reserve lending online and once you understand how it works you will realize why we are trillions upon trillions in debt. Basically the FED made USA take out a proverbial "credit card," that we can't pay the interest off. The reason why is because our government (this is a HIGHLY debated topic,) has 3 big issues.
FRAC. SUB Statement
- It doesn't have a balanced budget.
FRAC. SUB Statement
- Military spending, "black budget" or not, is ridiculous.
FRAC. SUB Statement
- DUMPING TRILLIONS into failed companies and businesses to keep them afloat. While led by bad practices and poor financial choices that should cause them to fail and go bankrupt like everyone else. ESPECIALLY LARGE CORPORATION AND BANKS!!! Meaning they know when they give them the bail out they will just go bankrupt again indefinitely.
I also have to add in that this is the exact REASON WHY BITCOIN WAS INVENTED! To fight this exact issue. Over printing the monetary supply / hence the term is called "fractional reserve lending." Which brings us to our last point. . .
- PAYPAL has began printing paper bitcoin which is basically the same as number two. They are artificially increasing the supply which if left unchallenged will become the norm of many fortune 500 companies who will set up shop in this fashion. Please I urge everyone to see that the ELITE (whoever you call them...) has started its attack on bitcoin and I believe this will be the plan:
(THIS IS NOT FINANCIAL ADVICE)
- The Elite and Wall street are frantically buying up as much bitcoin as they can. The next part would be suppress people from entering or learning about the space because they probably can't prevent this bull run because of one reason. . . They have to much skin in the game at the moment, however once we peak at our new all time high ($100,000 - $300,000 only guessing.) Youtube is a great example of the suppression going on by shadow banning people or straight up banning someone in the first place with little to no reason. This is so people don't have main stream access to this life changing asset class.
They already removed some of the biggest exchanges so they don't have to worry about them selling or manipulating the price and messing with their affairs. During the time, after all time high, i feel they will sell or will have sold after the alt run. I can't say if the alt run will have happen or not, because soon after all time high and it looks questionable I predict they will announce USD tether is unlawful or a scam and send bitcoin and alts in a very big death spiral indefinitely.
HOW I FEEL: The reason why I am so passionate about bitcoin and the space is because I have been in it for almost 10 years. It has changed my life for the better. I bought my first house with most of the proceeds and live a comfortable life (not rich, but good.) I just want everyone to have the same experience I had and realized this was made for us, by a man whom wanted us to decouple from a flawed monetary system that just drains people money, and their soul.
The dollar can barely buy anything and the lower class all but struggles to live, while the 1% (now smaller percentage) owns 99% of all the money supply. How did we let this happen??? That's another story for another time. The real question is. . .
Will you let this continue to happen with Bitcoin???
Thank you for taking the time to read and respond,
ARU