A negative-sum game is a situation where the total losses outweigh the total gains, resulting in a net loss for all participants on an aggregate basis. Unlike a zero-sum game, where one person’s gain is another’s loss, a negative-sum game shrinks the “pie” for everyone involved.
Example of Casino being a negative sum game: Gambler A win $97 and Gambler B lose $100. The casino take $3 as their cut (rake). So it’s negative sum game amongst the gamblers.
Example of Crypto being a negative sum game: Crypto A win $97 and Crypto B lose $100. $3 is made by miners, exchanges, coin founders, government, hackers selling none-purchased crypto.
In total, these entities sold maybe $30-40 billion worth of none-purchased crypto:
Exchanges selling: I am guessing maybe around $16 billion a year
Miners selling: I am guessing maybe around $14 billion a year
Coin Founder selling unlocked coins: I am guessing maybe $14 billion a year
Hackers selling: I am guessing maybe $2 billion a year
Government selling confiscated coins: about $1 billion a year (average out the past few years)
submitted by /u/punishGoalhanging [link] [comments]r/CryptoCurrencyRead More
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