2022-05-16 16:51:24
Stablecoins have a risk all of their own. Once they become depegged, and once those using the stablecoin lose faith... the whole house of cards crumbles. Will Tether be next?
If USDT decoupled because its users lose faith in the assets backing its 1:1 USD claim, the fallout would have a much wider impact than it did with the Terra stablecoin. Meaning, the market collapse would be much greater than it was just exemplifed by the Terra decoupling.
Bitcoin is an escape from an antiquated monetary policy. Yet, if we use leveraged stablecoins to borrow off of and purchase Bitcoin with such leverage... we exascerbate the negative impacts that stablecoin (a fiat derivative) can have on our assets.
Buying and HODLing Bitcoin purely, without leverage and borrowering, is the best way to transform our economy into a peer-to-peer, secure, borderless, and non-military backed system of exchanges.
Terra’s LFG Reveals What Happened to Its Bitcoin Reserves https://cryptobriefing.com/terras-lfg-reveals-what-happened-to-its-bitcoin-reserves/
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