The Bear Case for Crypto, Part II: The Great Bank Run
This article appears to be written under the assumption that coinbase and other exchanges are counterparties to the price. They are not. They are market makers. It&#x27;s impossible to have a run on dollar demand for BTC, because the price floats. If there are sufficient people selling, the price will simply fall, and has done so several times in the past, before recovering when equilibrium returned to the market. Exchanges are not taking loans to back the dollar value of BTC.<p>The author appears to lack basic understanding about how markets work in this space.