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How Much Money Has Been Destroyed by Crypto?
Posted on 6/10/22 at 12:39 pm
Posted on 6/10/22 at 12:39 pm
Everyone talks about inflation and the money supply. I wonder how many dollars have been straight up destroyed by crypto/NFTs. Conversely, I wonder how much how much money has been created by random people through crypto/NFTs.
If a lot of dollars have straight of vanished through crypto, it might take some time to show up in economic data. Money Supply could actually be shrinking.
Worth a discussion.
If a lot of dollars have straight of vanished through crypto, it might take some time to show up in economic data. Money Supply could actually be shrinking.
Worth a discussion.
9
Posted on 6/10/22 at 12:48 pm to Intelligent
For every dollar I give someone else for some of their crypto, that person selling me that crypto just got a dollar. Even if that piece of coin goes to shite, that dollar still exists in someone else's pocket, somewhere in the universe. I don't see how crypto is destroying currency in that sense. But I'm not a crypto expert, just have a little BITW which I regret.
Posted on 6/10/22 at 12:49 pm to Intelligent
About $1 trillion in value has been created since 2020
ETA: I misread OP. I hope his question is just poorly worded and he doesn’t really think money supply is shrinking because of crypto
ETA: I misread OP. I hope his question is just poorly worded and he doesn’t really think money supply is shrinking because of crypto
This post was edited on 6/10/22 at 12:53 pm
Posted on 6/10/22 at 12:49 pm to Intelligent
What the f?
There haven't been any dollars destroyed, just circulated.
The person that you paid for your crypto has the dollars.
The dollars didn't vanish.
That's like saying "I bought a car in 2018 for 50k and now I can only sell it for 20k" and thinking that 30k vanished from circulation"
Even people that say "I have 500k in my 401k" give me a deer in the headlights look when I respond "well, if you're fully invested you don't have any money in your 401k. You traded your money for shares of a company"
There haven't been any dollars destroyed, just circulated.
The person that you paid for your crypto has the dollars.
The dollars didn't vanish.
That's like saying "I bought a car in 2018 for 50k and now I can only sell it for 20k" and thinking that 30k vanished from circulation"
Even people that say "I have 500k in my 401k" give me a deer in the headlights look when I respond "well, if you're fully invested you don't have any money in your 401k. You traded your money for shares of a company"
This post was edited on 6/10/22 at 12:57 pm
Posted on 6/10/22 at 12:52 pm to LSU in the hizzle
Yeah OP needs to change his username.
Posted on 6/10/22 at 12:54 pm to Intelligent
Destroyed or created would not be the right word I would use. It is a zero sum game.
However, market cap would be a terrible way to measure crypto assets anyways. Since it is a complete unknown how much actual dollars back any of these.
However, market cap would be a terrible way to measure crypto assets anyways. Since it is a complete unknown how much actual dollars back any of these.
Posted on 6/10/22 at 1:01 pm to UltimaParadox
When you buy crypto, the person selling the crypto gets a rainbow dollar in exchange, so, in a sense, you're correct. We call them trans-dollar currencies. You want to be sure to keep your straight dollars and smaller change separate from your trans-dollar currencies or they can be corrupted. Hope that clears things up.
Posted on 6/10/22 at 1:24 pm to Intelligent
I hope you mean wealth and not money
Posted on 6/10/22 at 2:24 pm to Intelligent
i've made thousands in crypto which then was spent or invested into other things so ... its more of a transfer of wealth than outright destruction imo.
Posted on 6/10/22 at 3:04 pm to Intelligent
Crypto is our revenge for when you called us a nerd and broke our glasses
Posted on 6/10/22 at 3:43 pm to Intelligent
I did state the opposite as well. Random people are literally creating money out of thin air.
Example:
Someone makes a coin called Tcoin.
Sends me 10,000 Tcoin.
10,000 Tcoin is worth 1 ETH. I convert 10,000 Tcoin to 1 ETH.
1 ETH is worth $2,000. I convert 1 ETH to 2,000 dollars.
I just got $2,000 out of nothing.
Like I said, I am just opening a discussion.
Example:
Someone makes a coin called Tcoin.
Sends me 10,000 Tcoin.
10,000 Tcoin is worth 1 ETH. I convert 10,000 Tcoin to 1 ETH.
1 ETH is worth $2,000. I convert 1 ETH to 2,000 dollars.
I just got $2,000 out of nothing.
Like I said, I am just opening a discussion.
Posted on 6/10/22 at 5:45 pm to Intelligent
quote:
Random people are literally creating money out of thin air.
Since I think we’re at the point of semantics. People are creating something that someone else is willing to trade for their hard earned USD.
As to the wealth destruction. Buying crypto is no more likely to destroy your wealth than cigarettes, scratch offs, or the daily Starbucks coffee.
Posted on 6/10/22 at 6:03 pm to Intelligent
The $2000 existed previously though lol. Now you have it. If I build a piece of “art”from pinecones and garbage and someone buys it I didn’t just spawn money from the earth
Posted on 6/11/22 at 6:24 pm to Intelligent
quote:
Someone makes a coin called Tcoin.
Sends me 10,000 Tcoin.
10,000 Tcoin is worth 1 ETH. I convert 10,000 Tcoin to 1 ETH.
1 ETH is worth $2,000. I convert 1 ETH to 2,000 dollars.
I just got $2,000 out of nothing.
Like I said, I am just opening a discussion
This is just basic inflated value or poor valuation. Its why many people stayed away from Crypto. Its no different then when a single hot stock skyrocketed, like Gamestop. The valuation was never there, its always been 100% speculation.
The key was to never own a significant portion, and the smart people that did bought little bits at a time as it went up and then got out quickly anytime it dropped so as to never lose money.
Most money managers were fairly strict on never owning more than 3-5% in crypto of any significant portfolio.
Posted on 6/12/22 at 5:24 am to Intelligent
quote:Considering they arose from nothing, the answer is "not as many dollars as they created."
I wonder how many dollars have been straight up destroyed by crypto/NFTs
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