Without serious intervention the value of LUNA and UST should drop to basically zero over the course of the next few weeks. Sad times.
That's a basic fact. A debt of over 4000%? LUNA is really gone. I wonder how they were able to rise to stardom with such holes you pointed out in their tokenomics.
BTW, what do you think will happen if mining cost of BTC is consistently higher than the rewards? Will it die a natural death or just loose it's market dominance?
The situation in the crypto market really needs serious intervention.
The theory of a Bitcoin mining death-spiral falls flat on its face in reality.
That's because many miners pre-pay for energy (or create the energy themselves).
Also Bitcoin can be bought on sold on exchanges off-chain which stops the spiral.
For example how can Bitcoin crash to zero if you can't even transfer it to an exchange to dump?
The theory is full of holes and is instantly fixed by a hardfork.
Leveraged stable-coin death-spirals are clearly much more dangerous.