Baby Bear sent me an article last night that I found nothing short of shocking. I received the piece late at night, but it was engaging enough that I gave it a reasonably decent skim, and that alone was enough to spook me into dumping a portion of my crypto holdings. I promised myself I would give the article a close read the next day as well as share the article with you all. I have done both.
This isn’t an article I want to share for you to glance at for a few moments for amusement or curiosity. Those truly interested will need to devote a solid half hour of concentrated reading to truly get it, because it’s detailed, intricate, and well-researched. Here is the link to the article, named The Bit Short, and by no means am I going to try to summarize it here, because it deserves a full and complete reading.
I will offer a few of my own “takeaways”, having read it, however:
- If what the article says is true, this piece should be on the front page of the New York Times;
- It essentially lays out what could be a jaw-dropping currency fraud in which Tether, which is the crypto creation completely fungible with US dollars, is being created out of thin air far, far beyond what is in actuality backed by true US dollars (basically a multi-billion dollar counterfeit operation);
- This tidal wave of Tethers has had a huge part of pushing crypto up to lifetime highs;
- If I was an evil billionaire, and if this article is true, I’ve thought of a genius scheme – – – (1) take on a huge short position in Bitcoin via futures (2) establish a rather large Bitcoin position and transfer those coins into the Kraken system (3) demand US dollars in exchange for liquidating your coins, which would cause a bank run on Tether and exhaust their reserves. At that point, if the article’s assertions are true, the entire thing would collapse like a house of cards.
Here, incidentally, is Tether as shown by SlopeCharts. As you can see, there certainly seems to be rock-solid faith that one Tether equals one Dollar. Time will tell who is right…………..the market………or the author.
