There is still a big question of whether a panic that breaks Tether's peg might cause enough chaos to discredit the entire market for a while. It's odd that Alden doesn't address that.
Some other cryptocurrencies could go up when that happens, but it seems like it would be bad for demand in the slightly longer run.
I keep reading people post this on HN but I promise you it won’t matter. The shock of Tether not being fully backed already happened back in 2018 and the $1 peg briefly broke before recovering. What’s the next shock? It’s still not backed? The market already knows this and doesn’t care. Retail currently can’t cash out USDT and still won’t later.
IMO the only way USDT dies is if the US government makes using it illegal. Nothing else will make a dent in it.
Some other cryptocurrencies could go up when that happens, but it seems like it would be bad for demand in the slightly longer run.