News for hackers. Stuff that matters.

A comment on Binance's books are a black box, filings show, as it tries to rally confidence. Parent comment

Re:Binance's books are a black box, filings show, as it trie... by corv on Monday December 19, 2022 @10:03PM (#34061018)
No, the market isn't a zero-sum game. "A rising tide lifts all boats"

Of course everyone cashing out at the same time would be akin to a bank-run. In practice this doesn't happen since people bought in at different times and have a different cost basis.

[ Parent | on HN ]
Re:Binance's books are a black box, filings show, as it trie... by Xelynega on Tuesday December 20, 2022 @04:00PM (#34072467)
Ok, but where does the actual money come from?

If I bought 10k of ethereum at one point in time and sold if for 100k, I put 10k into a pot which I took 100k out of.

Basic math tells me there won't be a "rising tide" for the boats that are left when anyone else pulls out.

[ Parent | on HN ]
Re:Binance's books are a black box, filings show, as it trie... by omgomgomgomg on Tuesday December 20, 2022 @05:40PM (#34073798)
A rising tide also makes some vessels capsize, though.

I do not see how crypto is not a zero sum game, actually its a negative sum game if we deduct the mining costs, lost coins and the exchanges fees. Wasnt this supposed to work without whaleish, centralised exchanges?

[ Parent | on HN ]