4 ms·

If crypto goes to a tiny fraction of a cent then I will buy all of it. Since I will never sell it for zero then it can never go to zero.

arcticbull 4y ago
Not quite. Zero for a trading asset is a price below a tick. So if it's trading for 0.005 but the tick size is 0.01, then it rounds to zero. This will likely happen to Luna soon in spite of many folks having actual LUNA tokens.
- chrischen 4y ago
  Who cares about ticks when it’s two people trading with each other? If there is a liquid market I’d imagine they’d readjust the tick size to serve whatever market remains?
latchkey 4y ago
If there is no liquidity, then it can go to zero since you can't find anyone to sell it to.
- whatever1 4y ago
  Thing is that you will always want to buy something from China or EU (unless their people and resources disappear). Example: We imposed strict sanctions to Russia that almost cut any trade with them. Is the Russian currency valued at 0? Of course not. Because Europeans, Indians, Chinese are buying Russian currency to pay for Russian natural gas / oil.
  - latchkey 4y ago
    It is because the US didn't close all the loopholes and because foreign countries have to buy energy in rubles... ie: heavily manipulated currency. https://www.npr.org/sections/money/2022/04/05/1090920442/how-russia-rescued-the-ruble https://www.npr.org/sections/money/2022/04/05/1090920442/how...
    - whatever1 4y ago
      See? Regardless of the policy their currency cannot go to 0 because it has an intrinsic value backing it. The resources and the people of the Russian Federation.
      - latchkey 4y ago
        I get your point, but I see it more like the government can continue to force people to make the currency valuable by requiring payment in rubles. Hence the manipulation. If you got rid of the government, the value of the currency might still go to zero, while the intrinsic value of the resources could still be worth something paid in another currency.
        whatever1 4y ago
        Of course the organization of people under a single entity is what gives them bargaining power. If there was no Russian government and army then you would just go in and take whatever resources you like at the cost of maybe a couple of bullets.
lupire 4y ago
If the value is less than transaction costs, it is worth 0.
- latchkey 4y ago
  Untrue. You can buy 1 shitcoin for less than the transaction cost and it is still "worth" what you paid for it. More accurately, it is "worth" what someone else will pay you for it. Transaction costs are not a factor in the worth of the asset.

arcticbull 4y ago

Not quite. Zero for a trading asset is a price below a tick. So if it's trading for 0.005 but the tick size is 0.01, then it rounds to zero. This will likely happen to Luna soon in spite of many folks having actual LUNA tokens.

chrischen 4y ago
Who cares about ticks when it’s two people trading with each other? If there is a liquid market I’d imagine they’d readjust the tick size to serve whatever market remains?

latchkey 4y ago

If there is no liquidity, then it can go to zero since you can't find anyone to sell it to.

whatever1 4y ago
Thing is that you will always want to buy something from China or EU (unless their people and resources disappear). Example: We imposed strict sanctions to Russia that almost cut any trade with them. Is the Russian currency valued at 0? Of course not. Because Europeans, Indians, Chinese are buying Russian currency to pay for Russian natural gas / oil.
- latchkey 4y ago
  It is because the US didn't close all the loopholes and because foreign countries have to buy energy in rubles... ie: heavily manipulated currency. https://www.npr.org/sections/money/2022/04/05/1090920442/how-russia-rescued-the-ruble https://www.npr.org/sections/money/2022/04/05/1090920442/how...
  - whatever1 4y ago
    See? Regardless of the policy their currency cannot go to 0 because it has an intrinsic value backing it. The resources and the people of the Russian Federation.
    - latchkey 4y ago
      I get your point, but I see it more like the government can continue to force people to make the currency valuable by requiring payment in rubles. Hence the manipulation. If you got rid of the government, the value of the currency might still go to zero, while the intrinsic value of the resources could still be worth something paid in another currency.
      - whatever1 4y ago
        Of course the organization of people under a single entity is what gives them bargaining power. If there was no Russian government and army then you would just go in and take whatever resources you like at the cost of maybe a couple of bullets.

lupire 4y ago

If the value is less than transaction costs, it is worth 0.

latchkey 4y ago
Untrue. You can buy 1 shitcoin for less than the transaction cost and it is still "worth" what you paid for it. More accurately, it is "worth" what someone else will pay you for it. Transaction costs are not a factor in the worth of the asset.