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Crashonomics

21 Jun, 3 tweets, 2 min read

Different hypothesis about the Chinese actions: What if they are seeing the outflows and #Tether's peg is about to break. By banning their financial companies from the crypto market they are ring fencing them from the potential fallout and perceived contagion. 1/2
#BTC #Ether

Also by closing the miners the are forcing them to cash out and pay their shadow loans and electricity bills to the state affiliated enterprises. Basically forcing a head to the exit doors while there is still time and liquidity to get some money out. 2/2
#Bitcoin #doge #USDT

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@Crashonomics1

19 Jun

The Destruction of Cryptocurrencies
The market in cryptocurrency is about to be rocked (down another 70%+ ). Here is my hypothesis:

To trade cryptocurrencies, you need to exchange fiat for digital coins, and to do it in size with liquidity it is a two-part transaction. 1/12

Fiat to stable coin, stable coin to token, and the reverse (token to stable coin to fiat) to cash back out.

That reverse transaction is the Achilles heel of the cryptocurrency world and why we are on the verge of an additional $1 trillion dollar wipe out. 2/12

Stable coins are the liquidity bridges of the crypto world and they are shaky if not fraudulent bridges, that only work well in one direction.

Using Tether as an example - give $1 in fiat and get one Tether back. Its reserves are unaudited so Tether could print 1 Tether 3/12

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