/biz/ - Business & Finance

Let's say I have 100 BTC and I make an exchange with a new coin on it called Newcoin. Assume my exchange only trades in Newcoin/BTC pairs.

Now assume that I take my 100 BTC to the exchange and buy 100 BTC worth of Newcoin with it and the people I've bought from don't take the BTC off the exchange.

Wow. Newcoin's market cap is now increased by 100 BTC but the market cap of BTC is the exact same. The market cap of the entire world of crypto, however, is now higher as a result, but no new fiat money was added to the system.

Where did the new money come from?

>>3083730
>sketchy PoW currency that was created to be shilled vs. already released protocol used for decentralized exchange
Theyre way different though.

>>3009941
You do realize that, from a trading/investing point of view, the price isn't what matters. What matters is that we're trading the percentages, regardless of the token.

Also, you can't compare this to Bitcoin. One is meant to be a store of value with artificial scarcity (thus the 21 million limit, though we mustn't forget it divides further due to the 8 decimal spaces). It's basically gold, but with additional usages.

The other is a token that is used to power (for want of a better term) an entire future ecosystem that the developers expect will grow and expand over time. Hell, this thing is only getting started and just has one active district. We still have at least 2 more to go, plus the proposals. One of the proposed districts (Decentraland) is already having an ICO just for themselves. If this thing does grow, then those 1 billion tokens are needed to fuel expansion.

You're basically complaining that an orange is inferior to an apple because there are fewer apples (which make them more prized). Okay, sure, but you're under the assumption that only the scarcity of the fruit matters. What I'm saying is "These oranges also derive their value from the fact that you can also use them to make orange juice, fill you with vitamin C, make body scrubs, dry and powder rinds, clean my sink, compost it, reduce trash odor, etc." The value of oranges will benefit from all those activities.

>>2849561
When would the third coin come into effect, hypothetically?

>>1969962
Just to make sure: there *are* people involved who are actual blockchain devs, game devs, and so forth, right?