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Does luna failing prove btc and ltc cannot become a

reserve currency?

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No, it proves that the simplicity of Litecoin and Bitcoin is it's strenght.

I live in a country that suffered massive inflation. What happened with UST i've seen it happen to a whole banking system. A dollar in banks worth 10 cents in paper money. Most don't think that's even possible but the whole world will experience massive inflation against the dollar and when that happens, coins like Litecoin should have massive use case, not these NFT craps

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