Re:Crypto dominoes fall in the wake of FTX's collapse
by umanwizard on Friday November 18, 2022 @08:50AM
(#33654625)
The person who sold it to you for $1 (or, possibly, the person who sold it to them, recursively).
If A mints a coin for free and sells it to B for $0.25, B sells it to C for $0.50, C sells it to D for $0.75, and D sells it to E for $1.00, at which point it crashes to zero, A, B, C and D have all made $0.25 each, and E has lost $1.00, but nothing of value was created or destroyed.
E incorrectly believed that the coin was worth $1.00 and thus that more wealth existed in the world than was actually the case, but that doesn’t mean wealth was ever destroyed, just that his incorrect estimate was updated.
If A mints a coin for free and sells it to B for $0.25, B sells it to C for $0.50, C sells it to D for $0.75, and D sells it to E for $1.00, at which point it crashes to zero, A, B, C and D have all made $0.25 each, and E has lost $1.00, but nothing of value was created or destroyed.
E incorrectly believed that the coin was worth $1.00 and thus that more wealth existed in the world than was actually the case, but that doesn’t mean wealth was ever destroyed, just that his incorrect estimate was updated.