In mathematics things could have the same sort of % and the changes, however in finances the difference is bigger than you could imagine. Just to give an example if you own 100 million dollars and you have to spend 1 million dollars on something, it is not always equal to you having 100 dollars and spending 1 dollars of it. Mainly because your 100 million dollars would continue to make you money while you wait, whereas your 100 dollars will be finished by the end of the day/week/month depending on where you live.
So, rich people do get richer because even when they spend money, or lose money, or invest it, they are also making it back from somewhere else, warren buffet could have a %10 negative year and would still be up in total thanks to all his income. Poor people get poor because the money we lose, will never come back and could never be recovered.
This is what's happening in the market right now. It's like getting punished for not riding the bitcoin wave when it was just a few cents back then. And there's nothing that we can do about it really other than ensuring that we don't buy hastily or sell without second thought as it will automatically equate as our loss. The whales probably know this, but the thing is unlike with fiat, they don't have that much hold on us. In fiat the richest people could just dump out their investments and we'd all be homeless the very next day. This is probably because cryptocurrencies are still a developing technology.So, rich people do get richer because even when they spend money, or lose money, or invest it, they are also making it back from somewhere else, warren buffet could have a %10 negative year and would still be up in total thanks to all his income. Poor people get poor because the money we lose, will never come back and could never be recovered.
That's my insight regarding this issue. Kind of disheartening, but we can't really do something about it other than the one I have stated above.
