Up until now, any dollars that have entered into the Crypto ecosystem have remained in the Crypto ecosystem. If somebody made a profit on Bitcoin they would diversify into altcoins. If somebody made a profit on altcoins they would diversify into NFTs. If somebody made a profit on NFTs they would stake their Stablecoins on some DeFi app earning 10% interest. People say that Crypto is a hedge against inflation, but the Crypto ecosystem creates its own inflation by printing unbacked Tether (USDT) tokens. When the USDT peg to the USD breaks, all Crypto assets will instantly lose 90% or more of their value in a single day.
We are interested in knowing whether or not Alameda Research actually wires USD to Voyager Digital (TSX: VOYG) for their $75 million private placement investment or will Alameda Research attempt to pay VOYG 75 million USDT. Alameda Research is one of only two buyers of nearly every USDT token printed during the past year. Alameda issues commercial paper in itself to Tether as backing for the token. If Alameda wires USD to VOYG they will be shuffling around venture capital money that has been allocated to them by another firm like Circle (possibly from reserves backing their own stablecoin USDC).
Out of nowhere, Alameda's founder Sam Bankman-Fried is being promoted this year by Forbes as the world's wealthiest Crypto tycoon with a supposed net worth of $22.5 billion, but prior to 2021 nobody had ever heard of him. He literally appeared out of nowhere and nobody questions who the hell this guy is. Nobody we know uses his Crypto brokerage firm FTX, yet suddenly they bought the naming rights to the Miami Heat arena and they paid Tom Brady millions of dollars (or millions of USDT) to be featured in an ad that has only been seen by 63,000 people! How could the naming rights to an arena possibly be a smart investment for FTX a Crypto exchange that almost nobody uses? Are they just trying to make themselves look big so that nobody questions the idea of backing Tether with Alameda/FTX commercial paper?!
Part of the reason the peg hasn't broken yet is because of the "real fiat money" printed by the Federal Reserve that has chased the gains of a manipulated Crypto market that appears to be fully controlled by Sam Bankman-Fried, where he can pick the price that he wants Bitcoin to trade at tomorrow and it will go there. It is not a coincidence that when one Crypto exchange goes offline during a Crypto price downswing, they all go down together at the same time.
Ultimately, the Federal Reserve's 0% interest rates have prevented the USDT peg from breaking. When the Fed raises the Federal Funds Rate, that is when the peg will break.
Preparing Americans for Hyperinflation
