> Luna crashed because people lost trust in it.
No. It crashed because trillions of tokens were created rendering each token worthless.
No. It crashed because trillions of tokens were created rendering each token worthless.
Whatever fate lies ahead for Bitcoin, it doesn't have this particular weakness. It's not "leveraged" in the same way as Luna/UST.
People lost trust because they knew people losing trust would cause a death spiral, and they wanted to get out before everyone else.
It was a fire in a crowded theater. Bitcoin depends on trust, yes, but there's no Damoclean sword like there was for Luna. Some people losing confidence does not necessarily lead to others losing confidence.
Prices stay changed because the beliefs change.
If people had thought this was a sane and reasonable move that didn't really affect things the price would quickly return despite the quantity increasing.
The believed durability of the token changed
No matter what strategy is to be used to try to repeg it, it will only work if there's faith in the price.
Price isn't a thing it's a relationship between people about a thing