🐈

a lot of markets feel quite similar to debeers & diamonds. the total stock of stuff is accumulated/distributed in order to maintain a useful market price. like fat reserves & insulin response

distribution dampens price by increasing supply and accumulation increases it by reduce supply (assuming demand stays constant)

debeers has some degree of control over demand but a viral video about how fake diamonds are cheap and undistinguishable or about how debeers is monopoly creates demand volatility so it adjusts the supply to stabilize the market rate just like a body maintains temp/metabolism

note that it's not about getting the highest price possible. there's a certain temperature range that the whole system operates at given its biological constraints

this is true only when there is a clear majority and minority stakeholder and the majority holder can unilaterally affect supply in gme's case, the large players were actually holding onto negative supply and got squeezed by a swarm that was holding onto the real supply

this holding would have done nothing with a "real" asset like say cheese. there's a cost to hoarding cheese so that the few wheels remaining on the market have super high prices. cheese goes bad, opportunity cost, etc...