Re:Former US SEC attorney: 'Get out of crypto platforms now'
by anonymouskimmer on Wednesday June 21, 2023 @07:56PM
(#36426425)
If you actually are using it as a currency, you don't need it to have any liquidity (with respect to exchanging it for another currency). You just need the person you're dealing with to prefer it to the alternative.
A minority of people flooding to the exits can easily remove all the liquid cash from the system and cause it to collapse. There's probably no more than around ten billion in cash at any one time supporting a nominally trillion dollar financial system. A 1% stampede for the exit can produce a crash by draining that liquidity to zero.
And when the dust settles it will all have been a transfer of wealth from the poor to the rich.