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Like any currency. If the network has others buying that coin for 1 dollar (and there is enough liquidity), then yes. If you want to call this a Ponzi scheme,

Like any currency. If the network has others buying that coin for 1 dollar (and there is enough liquidity), then yes. If you want to call this a Ponzi scheme, then you have to be fair and consistent and call the dollar system "the other Ponzi" scheme too (because your 1 dollar purchasing power is not the same as todays).

Eisenstein 4y ago
The person holding the last 'dollar' in the 'dollar' Ponzi is the US Government. The person holding the last 'dollar' in the 'tether' Ponzi is a shady businessman who won't reveal his books. Which one would you rather owe you?
- lixtra 4y ago
  It’s not the fact that the government owes you that makes USD valuable. It’s you owing the government (taxes) that makes USD desirable for you - or go to jail.
  - junofan 4y ago
    Let’s not fall for this modern monetary theory chestnut. Paying taxes didn’t save the Zimbabwean dollar. Taxes aren’t what makes money work.
- junofan 4y ago
  It’s offshore USD not controlled by the US government. That’s the whole point. Its users may transact USD completely outside the US’s financial tendrils. That’s the unique selling proposition, and why it’s commonly used by offshore exchanges.
deleted 4y ago
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notahacker 4y ago
This financially illiterate meme needs to die. It's like MLM scammers saying 'well all companies are structured like a pyramid' There's a massive difference between "we issue a token which has purchasing power because people are legally required to obtain it to pay their debts and taxes. Its purchasing power is allowed to slowly diminish over time, but it will continue to be demanded because people need it to meet obligations" and "we issue a token and lie that it's worth a dollar because it's backed by an equivalent quantity of dollars. Its purchasing power will collapse at the time we stop redeeming them for dollars, whether that's because we run out, get arrested or move on to the next grift with lots of un-redeemed dollars in our pockets"

Eisenstein 4y ago

The person holding the last 'dollar' in the 'dollar' Ponzi is the US Government. The person holding the last 'dollar' in the 'tether' Ponzi is a shady businessman who won't reveal his books. Which one would you rather owe you?

lixtra 4y ago
It’s not the fact that the government owes you that makes USD valuable. It’s you owing the government (taxes) that makes USD desirable for you - or go to jail.
- junofan 4y ago
  Let’s not fall for this modern monetary theory chestnut. Paying taxes didn’t save the Zimbabwean dollar. Taxes aren’t what makes money work.
junofan 4y ago
It’s offshore USD not controlled by the US government. That’s the whole point. Its users may transact USD completely outside the US’s financial tendrils. That’s the unique selling proposition, and why it’s commonly used by offshore exchanges.

deleted 4y ago

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notahacker 4y ago

This financially illiterate meme needs to die. It's like MLM scammers saying 'well all companies are structured like a pyramid' There's a massive difference between "we issue a token which has purchasing power because people are legally required to obtain it to pay their debts and taxes. Its purchasing power is allowed to slowly diminish over time, but it will continue to be demanded because people need it to meet obligations" and "we issue a token and lie that it's worth a dollar because it's backed by an equivalent quantity of dollars. Its purchasing power will collapse at the time we stop redeeming them for dollars, whether that's because we run out, get arrested or move on to the next grift with lots of un-redeemed dollars in our pockets"