When we hear that the #الكريبتو market has lost $100 billion, this doesn’t mean that $100 billion in cash has disappeared. It usually means that the market value of the assets has fallen. Market value is calculated by multiplying an asset’s current price by the number of coins in circulation.
For example, if there are one million coins and each coin is worth $100, their market value is $100 million. If the price of a coin falls to $50, the market value becomes $50 million. That’s how the market lost $50 million in value, even though it doesn’t necessarily mean that $50 million worth of coins were sold or that this amount of cash left the market.
But the losses can be very real for investors. Someone who bought a coin for $100 and sold it for $50 actually lost $50. Another investor may profit from the price change, but every dollar lost does not necessarily correspond to a dollar gained by someone else. And with leveraged trading or when a platform goes bankrupt, actual funds can also be lost.
In summary: market capitalization is not the amount of money in the market, and an increase in it does not mean that the same amount of money has flowed in, just as a decrease does not mean that the same amount has flowed out in cash. It is an estimated value that changes with prices, while actual profits and losses depend on what an investor buys and sells, their liabilities, and what they can recover from their assets.$NEAR
