You could put your house up for sale at $20 million but if people aren't buying it, then that's not what it's worth. Then value and price don't match. This isn't the case for cryptocurrencies that are traded on liquid markets, price discovery is happening all the time. Maybe it's worth $100 tomorrow or $5000, it doesn't really matter. It's still what it's worth at the time.
Price and value are not the same. Ponzi schemes require buy in but still have no underlying value.
Also lol at crypto markets being liquid. In stablecoins maybe. Liquidity literally means volume has very limited effects on the price of an underlying. $100 or $5000 tomorrow is definitionally illiquid
I read what you said, please don't assume I didn't read your reply.
Regarding liquidity, that's not really contradictory to the definition. That's only if I meaningfully impact the price by selling, so I would have to personally cause the change to $100 or $5000 for it to be considered illiquid. If Alphabet goes down or up 50% because of a bad report it doesn't make Alphabet illiquid.
You do not understand the definition of liquidity.
Price in the crypto sphere is only dictated by transactions (which is why it's illiquid) because there is no intrinsic value. There is no wealth creation occuring. Volatility is definitionally illiquid.
In the equity sphere, assets have intrinsic value, and their price may be affected by extrinsic factors as well, but if the price tanks overnight because of bad quarterlies it's because the intrinsic value declined. The business's wealth creation potential declined.