From what understand, money doesn’t just disappear. When you’re at a poker table playing, the sum of money everyone started with is the same at the end(when someone loses $100, other(s) gain $100). If I sell you a crypto for $100 and it drops to $0, I would still have your $100. In this case, wouldn’t someone/some groups of people get all the money that is currently being lost?
In: 6
The total amount of money isn’t fixed. It’s also not tied to the total amount of value. The total amount of money is a quantity that follows few rules.
Once that’s out of the way, you realize that, when money disappears from one place, it doesn’t necessarily go somewhere else. It can just… poof… gone.
So the trillions lost in the overvaluation of coins are just lost. And the people that overvaluated them just don’t get anything in return for their failed investment. That’s a thing with speculation. You make some predictions about the future, bet money on it. If your bet is correct, you can cash in by selling the stuff you bought much more expensive than you bought it (to people that make the bet it will keep increasing in value). If your bet was incorrect, you need to accept the fact that you’ll sell at a loss.
Latest Answers