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?
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The flaw in your understanding is thinking that someone bought all the crypto at some time. This is not the case.
Let’s say I dig up a lump of gold. Is it worth anything? Only if I can sell it. If I keep it and never sell it I can claim that it’s worth $1000.00 because other people have spent that much on similar lumps of gold. But if suddenly people say gold isn’t worth anything, my lump can’t be sold so it is worthless.
And worse than that I’m out the $25.00 I spent on the shovel.
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