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0 pointscinntaile4y ago0 comments

How do you explain all the money floating around in an industry supposedly worth $0?

0 comments

You're conflating two things: the tokens, and the industry. The industry has value precisely because most of the tokens do not.

Getting people to buy worthless things from you is a phenomenal business.

cinntaileOP4y ago

That's why you can get all the tokens for free I guess?

defaultprimate4y ago

Speculation does not impart value. Price and value are not the same

cinntaileOP4y ago

You could put your house up for sale at $20 million but if people aren't buying it, then that's not what it's worth. Then value and price don't match. This isn't the case for cryptocurrencies that are traded on liquid markets, price discovery is happening all the time. Maybe it's worth $100 tomorrow or $5000, it doesn't really matter. It's still what it's worth at the time.

defaultprimate4y ago

Maybe you didn't see what I said the first time:

Price and value are not the same. Ponzi schemes require buy in but still have no underlying value.

Also lol at crypto markets being liquid. In stablecoins maybe. Liquidity literally means volume has very limited effects on the price of an underlying. $100 or $5000 tomorrow is definitionally illiquid

cinntaileOP4y ago

I read what you said, please don't assume I didn't read your reply.

Regarding liquidity, that's not really contradictory to the definition. That's only if I meaningfully impact the price by selling, so I would have to personally cause the change to $100 or $5000 for it to be considered illiquid. If Alphabet goes down or up 50% because of a bad report it doesn't make Alphabet illiquid.

1 more reply

tata714y ago

> Also lol at crypto markets being liquid

What have you had issues buying or selling on Uni or Sushi?

Lurkars4y ago

I think this is the definition of a bubble.

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