In this piece, we demonstrate how several recent reports about Bitcoin’s exposure to Tether have been grossly exaggerated. We then assess how exposed to both solvency and liquidity risks is Tether. We finally conclude that Bitcoin should be robust to Tether-related shocks.

The point of this essay is to show how value flows from users to shareholders in both companies and decentralized protocols and give the reader a mental model for making sense of profit share tokens.

This essay is a thought experiment to understand which types of tokens (interchangeable with “cryptocurrencies”) can and cannot accrue value.

Perhaps the most enduring source of conflict within the Bitcoin community derives from incompatible visions of what Bitcoin is and should become.

Even though batched transactions make up an average of only 12% of all transactions, they move between 30%-60% of all Bitcoins, at peak times even 70%.