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A comment on US Fed Official Calls Tether a ‘Challenge’ to Financial Stability. Parent comment

Re:US Fed Official Calls Tether a ‘Challenge’ to Financial S... by foobarbazetc on Saturday June 26, 2021 @11:15AM (#27642582)
It's just a Ponzi scheme where everyone is invested in the scheme because they hold crypto of some kind.

Then one day someone will wake up, decide they don't want that kind of exposure, and the whole thing collapses.

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Re:US Fed Official Calls Tether a ‘Challenge’ to Financial S... by jkepler on Saturday June 26, 2021 @12:10PM (#27643065)
You're correct, except that the waking up with be those holding dollars loosing confidence, not bitcoiners.

If you look at the classic definition of a ponzi scheme, bitcoin doesn't fit, though central bank fiat currencies do. See macro economist Lyn Alden's excellent article for the full explanation: https://www.lynalden.com/bitcoin-ponzi-scheme/

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