Player vs Player (PvP)
- From Daily Gwei (7-2-2022):
"So, why is crypto currently a PvP environment? Well, put simply, we are all currently fighting over a pie that just keeps getting smaller because prices are trending down/sideways and most of the ecosystem isn’t growing very much at the moment (with NFTs being the notable exception). So what happens is that with less growth, there’s less money being made, the trading/investing game then becomes harder, and people start turning on each-other (hence the ‘PvP’ concept). You can see this playing out clearly in the markets with the “rotator game” where you’ll have a bunch of the same people on social media promoting a certain trade and then a few weeks later rotating to a different trade. It’s really mostly all the same money sloshing around but the smarter folks continue to take money from the less experienced folks and the pie just keeps getting smaller.
This kind of thing is a big contributing factor to why so many people gave up on playing professional Poker. The tl;dr is that all the pros kept fleecing the noobies which meant it just became pro vs pro and the “easy money” evaporated (and eventually the noobies stopped flowing in). The same dynamic plays out in the crypto markets - the better/more experienced traders/investors are able to make money off the backs of all the new people buying in during bull markets but the new people are making money during this time too so it becomes very PvE (a net good thing). Of course, eventually the new money runs out for a time and then we revert back to a PvP environment where it’s every person for themselves - until the bull market comes back once again."
