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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This is the problem with the stock exchange and “evaluation” based markets, the value is not tied to anything, like it never existed.
Your analogy misses that everything is worth as much as someone willing to pay for it.
This is why pump and dump scams are theft, because people put in money when they bought the crypto then someone sells a huge amount, that money comes from the people who put in money. Then the value tanks and the poeple who put in money can’t sell their “posessions” anymore.
The value of crypto or any currency comes from the belief that someone in the future is willing to give something for it, another currency or services.
That value is not real, nothing is backing it up, just the commonly held belief. Buying and selling is what keeps this belief afloat and keeps money in circulation. But when the belief is gone, the currency collapses and when noone is gonna give you anything for the currency, that value is gone.
But yes you are right “In this case, wouldn’t someone/some groups of people get all the money that is currently being lost?” when people were buying that currency the money goes to either people already having the currency and selling when it is high, or to the people who “mint” the crypto initially. That is the danger of crypto and “fiat” currencies. You can make some out of thin air.
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