Teabag VS Pyramid Bag
This myth is partially true. The difference between the 2 is actually the processing method of the tea leaves themselves.
Teabags were originally invented by Thomas Sullivan, a New York trader and distributor. In 1908 he was preparing samples of different tea to clients and came up with an idea of putting tea leaves in small silk bags. To taste it, he thought the clients will take the tea out and brew, but instead they but the bags straight in the water, which they loved and asked for more.
The idea of a teabag got a massive following and revolutionized the tea industry, unfortunately at the expense of the quality. In 1930s a CTC method of processing black tea was developed by Sir William McKercher, which speeded up the oxidization process and produced high yields more quickly.
The CTC method stands for Crushing, Tearing, Curling. Using machines, the leaves of lower plucking quality are cut in small pieces to make the surface are of the leaf smaller and oxidize faster and get more out the harvest.