It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins. Not selling massive quantities of newly minted coins. The government on the other and has minted and spent trillions of dollars in stimulus which has resulted in permanent inflation.
The point is, Bitcoin will bounce back, the dollar will not.
> It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins.
LOL. And every tether is backed by a US Dollar in a bank account, right? Nobody could possibly (say) fake buy pressure to put the prices up?
> The point is, Bitcoin will bounce back, the dollar will not.
What point? For what purpose will bitcoin "bounce back" that the dollar will not?
As the dollar is not an investment, but a means of exchange, it doesn't seem particularly important whether the dollar 'bounces back', because nobody is trying to sell you dollars to stick under the mattress as a get-rich-quick scheme.
Savings accounts are for short-term liquid ... savings. You only keep in those what you need in the forseeable.
None of these is "investing in dollars" though. You're not just holding dollars and hoping the value will go up, because literally nobody does that. By design. If you want money to grow you invest it in productive assets. Unless you're into cryptocurrency when you gamble it on group psychology and dickbutt jpegs like 3AC did.
There is plenty of other manipulation, like constructing ponzi schemes that require BTC/ETH to get into, or "stable coins" backed by other crypto, or selling "art" like NFTs.
These all sooner or later crash down, and bring the value of ETH and BTC down with them. Already billions of dollars have left the crypto space, and are unlikely to ever come back.
It of course isn't impossible that BTC will bounce back, but there is also no guarantee of it. Perhaps Gamestop will bounce back as well, or the Venezuelan Dollar.
I very much doubt that people who have bought BTC at $60k, or the people cashing out of USDT while they still can, will want (or be able to) bring their money back into this crazy ecosystem.
Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.
USDT is no longer trusted — but still swapped around due to now-legacy exchanges denominating in it.
Your other points are not true for many cryptocurrencies, and for the ones it is, there are plenty of players who don't hold your concerns — right, wrong, or indifferent, they exist.
You say it's not trusted and yet the most volume in crypto (around 46 billion) is being traded every day it. Are you sure you're not just in your own thought bubble?
Most of the money minted and spent goes to dropping bombs on brown people and guarding Arab oil investments. And while the average American got a small check, giant companies got massive interest free loans. Again.
The point is, Bitcoin will bounce back, the dollar will not.