id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
blog-dshr-org-7661		DSHR's Blog: The Economist On Cryptocurrencies			.html	text/html	4426	482	77	Via investor sentiment contagion from cryptocurrencies to other high-risk assets such as meme stocks, junk bonds, and SPACs. I agree that these are all plausible channels, but I have two main issues with the article. Other than forced liquidations, the article does not analyze how the derivative market would respond to a massive drop in the Bitcoin "price", and whether Tether could continue to pump the "price". I certainly don't understand all the ramifications of the "toxic relationship between Binance and Tether", but the article's implicit assumption that they, and similar market particiapants, behave like properly regulated financial institutions is implausible. Tether reported that only 2.9% of all tokens are actually backed by cash reserves and about 50% is in commercial paper, a form of unsecured debt that is normally only issued by firms with high-quality debt ratings. Before the adjustment, some fraction of the now-uneconomic Bitcoin mining power has migrated to the rental market.	./cache/blog-dshr-org-7661.html	./txt/blog-dshr-org-7661.txt