This isn't my area of expertise. I don't understand how he would lose double. Maybe the position is a leveraged position. So if ETH goes up $500, then his position loses more than this. The reason I think to buy the spot was limit the losses over the weekend if price keep going higher since he can't touch the futures position until markets open. The second part goes over my head! Wow, that is quite complex! I honestly don't know much about Tether to be honest. I think its likely there is a scam in there, but I also see that they are making a shit ton of money now, and since they own lots of Treasuries, governments are not going to want to take them down. They already work with the government to freeze addresses, so if anything, they have protection. Since addresses can be frozen though, I wouldn't touch USDT, but luckily, I have no need for it. So saying all this, I think the risk of implosion is extremely low, and even if it went poof one day, Bitcoin will hardly be affected. In fact, if the peg starts to break and people have hours to do transactions, you would see $100B flow into bitcoin which will produce that God candle we are all waiting for.
All you need to go there is get aboard the bitcoin boat!‡ ‡ And pray a lot more people buy bitcoin after you do
Oh, like buying bitcoin will somehow mysteriously solve everything that's currently fucked up in this world. I wouldn't mind going all-nighter discussing how screwed up this nation is and all the economic problems there are. But to say Bitcoin is a magic cure for all these problem is beyond me. The government will still print money to excess and the inflation will still eat into your Bitcoin profits because you still need to convert it into fiat before you go out and use it to show off your new Lambos, your new Mansions, and all your Bucketlist gettaways on Instagram, etc.
I think you have to fix the people. I don't think it matters what kind of money you use. The smartmoney will take from the dumb money, the ambitious from the lazy, and you still have to deal with addiction and mental health issues that sre plaguing society today. You need some type of structure to manage the things you take for granted. If we have an economy based on someone making a profit, you can almost be guaranteed there will be some kind of corruption. That's human nature and it doesn't have anything to do with what kind of monetary system we use.
Not only that, but even if Bitcoin was adopted as a national currency, how is that gonna change anything? The monetary mess that we've gotten ourselves into was because of massive greed, so I highly doubt that anything good will come from these greedy Bitcoiners. If anything, they'll fuck it up even more. Another problem is with concentration of wealth in the hands of the few. Unlike fiat, you can literally corner the BTC market if you're uber-wealthy with a connection to power. For instance, BlackRock comes to mind. So what's to prevent these guys from any conflicts of interest? You know, like hard-forking out of existing Bitcoin and creating another ecosystem, one that's more favorable to their greedy appetite?
I look at this from the perspective of the butterfly effect. Imagine how much a person can accomplish if they only change one small thing in their life. Maybe they cut out eating a donut every day. All that sugar intake has crazy hormonal imbalances. They also probably put on some weight which leads to insecurity, and then affects their work productivity, and the list goes on. Cutting out that donut can have major implications 2 years down the road. Now apply this to the banking. Imagine if Yellen just said, no more bank bailouts. Keep your deposits under $250k or else you might lose it all. For sure there will be mass panic, but its one small simply thing, and its even a rule that is already in place. All of a sudden you would major implications and knock-on effects. Bitcoin is like turning the world upside down. It isn't just one thing, its everything all at once. Its not only cutting out a donut, but its turning your whole life around. You quit your job, you leave your shitty girlfriend. You tell negative people in your life to go fuck themselves. You cancel Netflix and instead get a gym membership. You sell your car and buy a bike. When you walk you look up instead of down. When a girl smiles at you, you don't just smile back but you talk to her. Basically, you change everything in your life that isn't working for you all at once. But back on track, the government can't print if nobody is willing to buy the debt, so there are limits, and we are already there. If investors want bitcoin instead of treasuries, then who buys them? Will they pay a 20% yield?? How many people are there like me out there who have completely embraced bitcoin in the past 3 years? How many do you think we need to scoop up 100-200k bitcoins, if there are even that many for sale under $100k? You see, I fully believe that when the government just gets out of the way of the private sector to fix things, the improvements will be exponential. It would be nice if some politician shrunk government out of the realization that this is the the problem, but this won't happen, so instead, the government has to be starved of revenue. When printing no longer works, governments will have to shrink. I think I just read yesterday that Gavin Newson out in California is slashing budgets because the revenue is just not coming in.
But the private sector is where all the campaign funding comes from. The private sector owns the government.
I'm glad you're already thinking this through. First of all, Blackrock doesn't own the bitcoin, the holders of the ETF do. Second of all, the govenment already has lots of bitcoin, it just shouldn't sell it all. Third of all, governments are supposed to work by funding projects through taxation. They collect the money, and distribute the funds (always poorly). Collecting and redistributing bitcoin means that all eyes are on the transactions so there can't be any funny business. Fiat is highly concentrated already. Look at how much the top 1% has. Isn't it like 50% of all the assets/wealth already? And even if this is the case with bitcoin already, we can't change the distribution now, but we can insure a fair system going forward. With fiat, the rules keep changing. People ran to real estate because they can see the dollar value dropping. Then they jack up interest rates and kill all the home owners. Now because inflation is high, they want you to lose your job before they start dropping rates. Next they want to tax unrealized gains. Is this system any better? When will the bullshit end?