- cross-posted to:
- [email protected]
- cross-posted to:
- [email protected]
President-elect Trump launched his own cryptocurrency overnight and swiftly appeared to make more than $25 billion on paper for himself and his companies.
Why it matters: The stunning launch of $TRUMP caught the entire industry off-guard, and speaks to both his personal influence and the ascendancy of cryptocurrency in his administration.
- It also speaks to the nature of the crypto industry that someone could have $25 billion worth of something that literally did not exist 24 hours previously.
the price of an asset (when the asset is the currency itself) is based on its economic activity. You said so yourself. The price is dictated by markets. By how much is bought and sold on markets. That is the definition of economic activity. Which part of that do you not understand?
Well you brought GDP as argument, which just doesn’t have anything to do with the price of an asset. If you sell a lot and buy a lot GDP grows, but the price of that asset can still be the same at the end.
Getting back to your initial argument:
This is just plain wrong, as I could just make myself rich according to that logic… I still need to have that FIAT-money, need to exchange it (in which case I have driven the price up), but now I have less FIAT, so either I have more FIAT to further drive the price, or well I need to cash out in which case I’ll drive the price down. If I just send crypto from one (anonymous) account to another it just does… nothing to the price…
people don’t use bitcoin to pay for other stuff. people buy and sell bitcoin itself. The currency is the asset.