Coinbase, Bitstamp, Grayscale, Circle and other major Bitcoin institutions’ exposure to the banking system will make them incredibly vulnerable if there is a liquidity crisis (the current Repo Madness is a bad sign)… At the very least, it’s something for Bitcoiners to think about…. right now only the US Dollar is legal tender… Bitcoin can and will be cut off from the rest of the banking system/economy if the Banks close their doors on major Bitcoin custodians.
If Bitcoin was legal tender, this wouldn’t be a problem. Although, I guess the economy moves faster than legislation, so if the dollar does actually collapse, then Bitcoiners can quickly pivot to reprice goods and services in Bitcoin… at which point, we’re sort of in a black market, because there is no way Bitcoiners will keep track of capital gains on their BTC transactions…
submitted by /u/the420chronicler