Well, the unsustainability of a negative sum game being masked by new investment is basically the most general form of a Ponzi scheme, and that's what this article is arguing Tether is
The essence of a Ponzi scheme is claims about above-average profit rate. Holding Tether by its essence can’t provide you more profit than holding cash.
It doesn't matter what profit rate Tether or any other Ponzi scheme claims to provide. In the case of Tether, they're claiming you'll have a profit rate of 0%, which is still worse than you should be getting, given that it may in fact be not backed by anything in particular
No. The essence of a Ponzi scheme is that outsized returns are fraudulently produced by using new investment funds to pay for withdrawals rather than being invested or retained. That's pretty much what Tether is alleged or suspected to be doing.
Ugh, outsized returns, that’s what I said. What outsized returns do owners of Tether expect? How much money can I expect to earn if I buy Tether instead of stocks or bonds? I expect to earn less.
