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 $100. In this case, wouldn’t someone/some groups of people get all the money that is currently being lost?
In: 6
It probably never existed in the first place. It’s not so much of a tangible loss as opposed to an opportunitsic loss.
Let’s say I have 1000 baseball cards of a baseball player.
I see on ebay they are selling for 100 dollars each, so I think to myself, I must have 100,000 dollars since I have 1000 cards each worth 100 dollars each.
Next day this baseball player hits a 1000th home run and now his baseball card is selling 1000$ a piece on ebay. Now I am a millionaire.
A week later, this baseball player murders someone. Now nobody wants his baseball card anymore and they sell for 1 dollar on ebay. Now I just lost 999,000 dollars.
That pretty much sums up the cryptocrash.
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