- No fixed supply currency has ever existed in a major economy.
- Bitcoin requires transaction fees to offset its halving mining rewards. Without bitcoin acting as a functional currency, the transaction fees required to sustain the Bitcoin protocol will not occur.
- Bitcoin is a fixed supply digital currency. See #1.
- Unaudited tether is the foundation of bitcoin and crypto. Tether could resolve the allegations of unbacked tethers that leads to questions of its reserves with an audit that it has promised for the last 10 years. Tether still has not had an audit.
Bitcoin was a failed attempt at a digital fixed supply currency. A foundation of unaudited tether transitioned bitcoin and crypto into a volatile speculative asset that made number go up. The price of bitcoin rose to $126,000 on the back of 187 billion tethers. At the moment with bitcoin 44 percent lower at $70,000, there are 184.5 billion tethers. So much for the conventional method of arbitraged redemptions to maintain a stablecoin peg. Allegations arise from independent researchers that Tether and certain crypto exchanges manipulate its peg with bot wallets, wash trading, and unbacked tethers. To get bitcoin to the predictions of $250,000, $400,000, $1 million, then $13 million, or whatever Michael Saylor pronounces next, is not going to happen unless Tether continues to print billions more tethers. I don’t see that happening with the coming Genius Act stablecoin regulation. Rather than comply its current stablecoin USDT with the coming Genius Act that requires audited reserves, Tether created a new stablecoin USAT. Tether’s proponent for traditional finance and market legitimacy is Commerce Secretary Howard Lutnick who, according to the Epstein files, visited Epstein’s island after stating on camera that he had severed all ties with Epstein. It appears that Tether has already headed for the exit with its gold purchases. The result is the deflating bitcoin bubble. There may be further bitcoin pumps, but the number go up case on the foundation of unaudited tethers appears to be over.
Caveat emptor.