Over the last few days, many Bitcoin maximalists/influencers have tried their best to reassure the herd that Bitcoin is fully decentralized and that this event is actually “bullish for Bitcoin” as it allows for “diversification” in mining.
While I am pro-Bitcoin, I will always prefer facts over fiction. Regardless of anyone’s personal bias, this event is not bullish in any regard. The only way we can see a rise is if Tether prints more money to cover up this hole.
Bitcoin has lost its edge with this news, and people are waking up to how blatantly overvalued the market truly is. Anyone transacting Bitcoin will now spend 9000% more in fees than any bank, and wait on average, 4600% longer. Does that sound like the future of finance to you?
The last time Bitcoin saw unconfirmed transactions, and transaction fees surge beyond 50$ was during the peak of the Bitcoin/ICO Bubble in December 2017. Could we be repeating this major correction?
In my opinion, this event exposes Bitcoin’s weaknesses in being a payment provider or globally accepted currency. With that, I expect this bubble to implode within the next few weeks or months, especially considering Tether’s required audits coming up later this spring, which should shed light on their price manipulation scheme.
Thanks for reading! Have a great day everyone.