This article is based on the assumption that you reader believe that Tethers are in fact not backed by real currency and instead were simply a tool used by Bitfinex to print money out of thin air and pump up the price of Bitcoin.

Now, with that out of the way, we need to start asking the real question. And that is if Tethers are indeed fake, then this all has to come to end at some point. So let’s look at the possible ways this all comes to an end and how you as an investor can prepare.

Bitcoin enters a bear market -If the Bitcoin price falls and does not start to recover quickly, Bitfinex will probably print more Tethers to prop up the price as they have in the past. However, if they can’t print enough to bring the price up, a sustained correction in Bitcoin would cause their Tether scheme to start to unravel.

Tether markets on all exchanges will be effected – Almost all the major exchanges have Tether pair markets. So if the Tether collapses, it will be a huge blow to every exchange. How much, it’s impossible to say since the exchanges don’t publish their books so we have no idea how liquid they are. But just the other day a quick drop in Bitcoin price caused many major exchanges to shut down for a period of time. They couldn’t even handle the price fluctuations, so I’m not sure how they would handle the collapse of one of one of their trading pairs. If it became bad enough, we could even see some exchanges go under. But like I said, nobody knows how liquid these exchanges really are.

Possible exit strategy – Most scammers don’t go down with the ship. When the scheme starts to run out of steam, they plan what’s called an “exit”. In the old days, the guys running the scam when would say the got robbed, or these days, they say they got hacked and all the money is now gone. A similar exit strategy could be used here as well. However, there is a new wrinkle to this strategy and that’s the new futures market opening this month at the Chicago Board of Trade. If it is known that a collapse of Tether, and drop in Bitcoin price is coming, and the people behind it know when, they could easily bet huge against BTC on the futures market. Then when the Tether scam collapses and thus the BTC price falls, they could walk away with a huge payday.

In any event, the fall of Tethers will happen eventually, and the evidence is pointing that it will come sooner than later. The question is, how do you prepare for it as an investor. For that, I would say to have some fiat ready to deploy when BTC has a dramatic drop in price. You can either save up your fiat, or decide to take some profits on other investments to raise more fiat that you can deploy. I am predicting we could see BTC at $3K or lower when all this happens. And when it does, that will probably be your last chance to buy BTC at those prices. Although this will be a huge hit to BTC, it will bounce back. Everyday retail investors who bought in at $8K or higher will just think they bought in too late last time, and they will all line up to buy in at the “beginning” this time around.

So why all this may sound like FUD, it could be a unique buying opportunity if you have some cash reserves to take advantage.