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
Nowhere. The money extracted from it by early adopters has been transferred into assets with real value, the rest goes up in a puff of smoke. That’s what happens with *any* Ponzi scheme: The early adopters can profit, or get their money back, by taking the money from people who came along later.
And Crypto **IS** a Ponzi scheme, that’s all. It *may* have been intended to be a viable currency, but in order to be a currency, you need to be a stable store of value, and crypto has **NEVER** been stable, which makes it completely unsuitable as money.
So, why did people stay in Crypto, when everyone knew it was never going to replace government-backed currencies? Because as long as the price was going up, everyone wanted to ride the wave to earn money for doing no work, and pass on these worthless cryptographically signed ledger entries to a greater fool, and it turns out the people who are holding them now **WERE** the greater fool.
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