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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It never existed in the first place.
I print a thousand pieces of paper and call them “blahbucks”. I sell one blah buck for $100 and stuff the rest in my piggybank. Now I can claim that I have 999 blahbucks in my piggybank, which is worth $99,900.
Except I don’t actually have $99,900, I have 999 blahbucks which is not the same thing. And if that one person I sold it to was the only person willing to spend $100 on a blahbuck, I’m not getting $99,900 for the rest of them. If I have to sell the next one for $50, I can now only claim that the rest of them are worth $49,900. $50,000 of “value” disappeared.
The same thing is true for commodities other than Crypto. Jeff Bezos may have “$100 billion in Amazon stock” but if he tried selling it all at once, he wouldn’t get anywhere close to $100 billion for it because there’s not that many people looking to pay that price for Amazon stock.
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