/biz/ - Business & Finance

Well the money came from people believing that this 'newcoin' is worth something so the fiat come in when they use it to buy your new coin.

this is making my brain confused
I guess the new money came from the creation of newcoin, it's supposed to be priced as the market sees it, but since you decided to put 100BTC in it that's what it's worth this moment

>>3725326
What....?

No the price of BTC was already $4000.
Then 100 BTC got transferred to my Newcoin exchange and was used to buy Newcoin, so the market cap of Newcoin increased by at least 100 BTC, and it was never sold. Then the 100 BTC, now in the hands of the people who sold Newcoin, just sits on the Newcoin exchange and isn't sold or anything.

So the price of BTC isn't changing from it, at all, but Newcoin's market cap increased by 100 BTC, or $400,000 if BTC is about $4000.

>>3725369
>>3725326
There is no new money, this is how literally every market cap in crypto that isn't tied to fiat , meaning it's only traded in BTC like on Bittrex, is created.

Do you understand what this market is now?

>>3725292
What you're really talking about is ICOs here. The proper practice is to burn the BTC so that there is a proper transfer of wealth.

Bump.

I'd bet my entire fortune that 75% of /biz/ doesn't understand this.

>>3725452
Ok but imagine if an ICO didn't cash out.

That's essentially what every exchange that doesn't support fiat is, since you can only trade back into BTC.

The amount of money in crypto is way WAAAAY smaller than people realize.

>>3725292
Yeah that's an ico. This doesn't take into account non ico transactions when people see value in Newcoin and they spend Fiat to buy bitcoin to go to your exchange to buy Newcoin.

Id be interested to see how much of the entire volume in crypto is tied up in the top 20 coins and how much is in shitcoin and icos.

Most new money in crypto comes in to buy btc and maybe a few other coins. Icos are a scam but they make up a very small part of the market

>>3725562
Also you can create value by attaching your coin to some type of stake in a working product

>>3725562
>>3725576
Yeah but I'm not talking about value, only market value in terms of USD.

Also you have no way of knowing that anybody spends fiat to buy Bitcoin for the ICO or that the ICO ever cashes out at all.

So realistically, the actual amount of money involved in crypto is much, much smaller than the market cap. Wouldn't the market cap, then, be more reflective of ICO involvement and trading than of some kind of bubble?

No other market cap for a market, like the stock market, deals with this because everything is traded in terms of USD only.

>>3725471
Holy fuck, you're an actual retard. Market cap is last price paid multiplied by the total amount of coins. It's not some hard metric. Do you think, for example, that when the market cap of all crypto dropped from 117 billion to 66 billion, that 55 billion actual dollars left the system?

>>3725617
I know that. That's not my point.

>>3725632
Your point is the actual amount of money in crypto is in BTC only?

How does exchanging currency work?

>>3725666
Yes.

>>3725471
75 percent of /biz/ doesn't understand this because this thread is 3 retards without the most basic understanding of how this all works.
>I created a coin
>Someone buys 100 BTC of it
>All for the same price apparently
>MC now 100 BTC! Hurdurr
>Money created out of nothing!!
In comes an even bigger retard somehow...
>I don't understand, brain hurts
>Must be how ICOs work
>Yeah, all ICOs are scams
>I wonder if there's a way to find out how much money is in different coins.
>Not possible
Jesus fucking Christ, this is the stupidest shit I have ever seen in my life, no joke

>>3725687
Any currency that can be turned into fiat money through exchanging them for BTC/ETH/LTC obviously has greater than zero monetary value. I don't get how you could think otherwise.

if you planted one apple seed and got an apple tree with 50 apples on it, where did the new 250 apple seeds come from?

>>3725735
So....if apple seeds in your example are fiat money, you're telling me that crypto has created 5 times the amount of fiat money that went into it?

The Federal Reserve will be very concerned to hear this...

Behold the stupidity of /biz/.

>>3725755
that is exactly what is happening

>>3725870
That's not fucking possible lol
You can't just create more money out of nothing. Value is not money.

>>3725292
I can solve this quiz easy

where did the people selling you newcoin get their newcoin? they must've gotten it from the newcoin ICO, and they used their fiat/btc/eth/whatever to buy it, which is your missing "new money"

>>3725892
No no no, it's just there, available on the exchange for the taking. A free ICO, if you will, being traded back and forth among people on the exchange for BTC. No BTC ever leaves the exchange and no Newcoin can ever leave the exchange.

>>3725705
You have to understand that 90% of this board doesn't even know what "short" means.

>>3725881
LOL, the fed does everyday.
crypto is just a way to harvest what the idiot fed has already unleashed. i-word
the crypto isn't going up, the dollar is going down

>>3725922
well now you're describing a hypothetical which will never exist in real life, so there's no need to solve it

I'm trying to find what doesn't make sense about what you said.

If I buy 100 BTC (let's say it's worth $1 each for simplicity sake) so I spend $100. I buy your coins for 100 BTC. Now I have 100 NEW, and you have 100 BTC still circulating, but my NEW is now worth something. I can then sell NEW to someone else, who then gives me 100 BTC. Now you and I both have 100 BTC. We both cash out, both of us have $100 each.

But then again, if there are only 100 BTC in the entire world, and I own all of it, I trade you 50 of my BTC for 50 of your NEW, you can't sell your remaining NEW to anyone else for BTC.

Marketcap is only worth what people think it is. I think I've totally digressed and I have no idea what you or I am taking about. I'm confused.

>>3725965
....what I'm describing is fucking Bittrex and other crypto exchanges which have no fiat pairs, only BTC, you moron

>>3725997
no, you put forth a fantasy in which an exchange gives away coins for free and never lets coins leave the exchange. in reality, nobody would even use such a shitty exchange. better luck outsmarting me next time kid

>>3726025
lol

>>3725997
>no BTC ever leaves Bittrex
I see someone needs to verify his account.

Bump

liquidity motherfucker...NEW has none

market cap means nothing without volume

Just saw another thread
>Bitcoin is going to canibalize Bitcoin Cash's market cap
Does /biz/ still not understand why this makes no sense?

>>3726299
wow, you're actually retarded

neck yourself

>>3725292
what animu is this qt from

>>3725881
>You can't just create more money out of nothing
wealth is not a zero sum game

>>3725292
>Where did the new money come from?
There is no new money.
Your question is nonsense.

Market cap ≠ Value

Nobody realized OP is describing what is going to happen with Bancor. $$$ retards

>>3725292
the expressed value is traded for btc, it doesnt matter how much is "in the exchange" it cpuld be zero cos the exchange is a scam

OP got the point
We are inside of the Crypto Bubble
The actual market cap is less than 100B