Cryptocurrency

Tether

  • The Jacobian argued that crypto is a ponzi scheme, artificially driven by Tether purchases. Stablecoins such as tether are used to drive BTC price rises on the theory that they are backed by the dollar. However, evidence exists that their backing is not in dollars but also more illiquid and volatile corporate paper1. Some have compared this to the idea of wildcat banking,@fauxNumberGoCrypto 2
  • Patrick McKenzie has argued similarly that Tether does not have the assets to back it’s dollar peg, and is the “biggest fraud in history” 3

Negative Aspects of Cryptocurrency

web3isgoinggreat.com - by Molly White Line Goes Up a documentary by Dan Olson


References

1.
Mortavai, S. A. Cryptocurrency Is a Giant Ponzi Scheme. at https://jacobinmag.com/2022/01/cryptocurrency-scam-blockchain-bitcoin-economy-decentralization (2022).
2.
Lewis, M. Going Infinite: The Rise and Fall of a New Tycoon. (W. W. Norton & Company, 2023).
3.
McKenzie, P. Tether Required Recapitalization In May 2022. at https://www.kalzumeus.com/2022/05/20/tether-required-recapitalization/.

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