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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Some of the money is gained by the creators and/or the first few people to buy into what are effectively like pyramid schemes.
So, yes some of the money is indeed “someone/some groups of people get ~~all~~ some of the money that is currently being lost?”
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However, some of the ‘money’ lost is the ‘market capitalisation’ falling.
“Market capitalisation” is an estimate of, hypothetically, if you sold it at the current price, what you would have. It is an estimate of what something is worth.
It appears that many crypto assets were massively overpriced at one point. That high price created a high market capitalistion. If that crypto asset was not overpriced, then people could sell them for that price and get that amount of money from other people.
However, due to how over-priced they were, when a more accurate price is realised, lots of that ‘market-cap’ is ‘lost’.
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