Terra Luna — $UST & Bitcoin — What it means?
I am huge fan of Luna & $UST and this is pretty much the best news ever for $UST. I have studied and watched the run of LUNA from early 2021 and you can check my previous writings if you are not familiar with this ponzi.
Sorry for quick puke i just had to spit something to contain myself.
More ways to defend the $UST PEG.
→ This will create more demand for $UST. I mean astronomically more than with just LUNA backing.
There is now less risks for death spirals (May 2021) since also $UST can be minted with BTC, also of course works other way around. LFG is aiming for 40% ratio of BTC. I see many worrying that LUNA will get less important and its value will drop.
With Bitcoin working as part of reserve currency the demand for $UST will skyrocket, there is literally zero reasons soon to hold any other stablecoin if you compare $UST to competition. USDC is better because it is backed by banks? USDT is better because it is backed by? What stablecoin would you hold next 3years if you had to lock them in? Yes the answer is $UST. $UST is already available almost every meaningful exchange and L1 and the adoption will only continue to grow from here.
Terra Luna already proved that it can work “just fine” without additional reserve asset, but adding the apex predator as reserve asset? Do Kwon hinted many times in the past that the aim is to make $UST fully decentralised and this is the way. This will also create more security and trust for $UST.
Don’t worry about LUNA price, it will continue to capture most of the value of $UST and with BTC as additional reserve the adoption of $UST have the potential to exceed our wildest dreams, with just LUNA backing there was always that doubt and ammunition for the cockroaches to scream when LUNA takes a beating.
THERE IS NO COMPETITION — COMPETITION IS FOR LOSERS
LUNA & $UST is like Alexander Barkov, best hockey player at the moment. He can carry and do everything, but what makes him so special and undervalued is that he makes everybody around him better. $UST & LUNA makes crypto all around better, it makes all the L1 better, see what happened to avax? Is it worse now? No its better — they have also Anchor now and the best stablecoin in the world. Same will happen to every other meaningful L1. What about Bitcoin then? It will make BTC that truly programmable apex predator. BTC don’t have to do anything else than just be BTC, with the $UST addition? BTC just got downgraded or something? No it got better. This is the magic of LUNA $UST, it makes everything better in crypto.
I don’t bother with assets which don’t have that “supervalue” component i ramble about in my every puke here. With LUNA i have to come up with another term, this ponzi is now “supervalueˆ10”. LUNA to 100 was meme just year ago, now we have 1k next… That is insane.
I am extremely bullish, but it is crypto and everything can change in a heartbeat. Remember that ALWAYS. When you wanna screenshot your holdings and show of to your family, or you wanna scream in your little “blog” how something will 10x? You know what happens next… LFG manages to acquire the BTC they want, but 6 months from that we get some black swan and BTC tanks? Luna tanks? Everybody panics… Anything can happen, its like the internet in 1997. I wannabe in this ride though and see where it goes. I WANT TO BELIEVE.