Someone asked the question what would happen to Bitcoin if usdt depended from the dollar.
I'm not really smart enough on this subject to answer so can you please explain?
#asknostr
Discussion
Not exactly sure what you’re asking but the answer is the same.
₿itcoin wins, the other two are shitcoins.
asking what happens if usdt (stablecoin) depersonalization from the dollar. would this affect bitcoin in any manner?
ok stupid ass spell check. DEPEGGED is the word I've been trying to type.
😂
I just looked up depersonalization, gave me flashbacks of last fall when I started floating up above my body watching myself walk down a trail in the woods. That shit was stronger than I thought it was. 🤪🍄
On a real note, I’m not really smart enough to answer this either but I’ll give you my thoughts.
As bitcoiners, I think we can agree that the US fiat dollar is basically fake. Tether is even more fake, being pegged to the already fake dollar.
Some people may argue that two wrongs make a right (two negatives make a positive). Dividing two negative numbers also makes a positive. Wait? Maybe dollars and tether dollars are positive? What? Are you messing with me?
Fuck it! ₿itcoin only!
There was someone who had a whole podcast about this exact subject….
Peter St Onge, TFTC with Marty Bent
And Peter McCormick… Between them this was a great rabbit hole to explore
So, where I expect this is stemming from is the idea that Bitcoin's USD denominated price is highly reliant on liquidity coming from Tether being minted and used to buy Bitcoin.
If Tether depegged from the dollar, it would probably be due to some kind of crisis with what they are using to back Tether, and people would no longer accept it at a 1:1 ratio. People would be fleeing out of tether and back to the "safety" of USD, and therefore we would no longer have a bunch of new Tether being minted and pumped into Bitcoin, so its price would also fall.
Thing is, Bitcoin doesn't need Tether. Its dollar denominated price is not reliant on Tether to be sustained. At worst we would see a short-term crash. Bitcoin's price cycles are far more affected by its internal supply issuance schedule and overall USD liquidity.
Just like the "China owns more than 50% of the hashrate!" FUD, I look forward to when we can finally put this rather weak bit of FUD to rest, as well.
bitcoin is its own protocol with unique transnational properties, but stablecoins get clearer clarification on their definition