What I Think of Bitcoin
This post should be mostly discounted because Ray doesn&#x27;t really seem to be aware of the true risk of the Tether scam, the biggest component of and risk to Bitcoin&#x27;s value.<p>For those not aware, Tether is a &quot;stable coin&quot; that issues tokens that supposedly represent dollars and can be used as a medium of exchange. However, it&#x27;s widely suspected that Tether is unbacked and printing fake dollars and even Tether itself has admitted that at least 26% of their tokens have no backing [1]. Tether has never been audited so we have no clue how much of it is actually backed and how much of it is fake.<p>This is extremely problematic because Tether is currently printing around $500 million per day and is a source of a significant amount of buy pressure in the market. Tether is used on almost every exchange and is the vast majority of Bitcoin buy orders so Tether can be used to artificially pump the price of Bitcoin quite effectively.<p>Ray points out Tether as a risk to Bitcoin&#x27;s value, but I don&#x27;t think he does an adequate job explaining the risk. Tether isn&#x27;t a small component of the Bitcoin ecosystem. It&#x27;s at the heart of Bitcoin with it being the primary currency used to buy Bitcoin with at most exchanges. Most of the buy volume is with Tether and that $500 million per day is huge.<p>Regardless of what one thinks about the value of Bitcoin, it&#x27;s irrational to invest while $500 million of fake dollars are being pumped in every day. Once that artificial $500 million buy pressure is removed, the market will face an existential risk. Who knows what the real price of Bitcoin would be without all that fake money?<p><a href="https:&#x2F;&#x2F;davidgerard.co.uk&#x2F;blockchain&#x2F;2021&#x2F;02&#x2F;03&#x2F;tether-printer-go-brrrrr&#x2F;" rel="nofollow">https:&#x2F;&#x2F;davidgerard.co.uk&#x2F;blockchain&#x2F;2021&#x2F;02&#x2F;03&#x2F;tether-print...</a> is a good article for additional context on Tether.<p>1. <a href="https:&#x2F;&#x2F;www.coindesk.com&#x2F;tether-lawyer-confirms-stablecoin-74-percent-backed-by-cash-and-equivalents" rel="nofollow">https:&#x2F;&#x2F;www.coindesk.com&#x2F;tether-lawyer-confirms-stablecoin-7...</a>