Does Bitcoin had a back up by real money? - page 4.

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Quote from: Buttermellow on July 20, 2018, 09:57:31 AM

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin currency exchanges work in a manner similar to banks. One first deposits amounts of money in the currencies supported by the exchange, to his own account in the exchange, uses these balances to trade with other users of the exchange and then withdraws that money. Unlike over-the-counter transactions, there is no risk of losing money due to people not fulfilling their part of the deal, as long as the exchange itself does not commit fraud or withhold money. Exchanging bitcoins for other forms of currency brings up some issues regarding chargeback fraud.

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Quote from: pinkliar on July 22, 2018, 11:14:59 PM

Actually I asked that before, and what if all of us sell our bitcoin? But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

You can only sell if there is a buyer...

The price will only go to zero if no-one is willing to buy. But as we have seen with alts, there are always buyers, even for the most obscure alts.

tiurminator

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No, so if all people in the world exchange their bitcoin the price will getting cheaper and cheaper and continue to decline, maybe until zero. Grin

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Quote from: Buttermellow on July 20, 2018, 09:57:31 AM

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

It is backed up by us, the investors who has invested their real money into it.
Now coming to the second question of yours, well if everyone starts to exchange their bitcoin all at the same time then it will be almost impossible to fill all the orders because they will be in the same zone that is selling. If there is no buy order against that sell order then it will never get executed and thus the market will remain as it is and there wont be any movement. This is why its not going anywhere as long as the money keeps flooding and backing up the bitcoin.

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Quote from: hugeblack on July 20, 2018, 11:07:41 AM

When looking at the currencies "real money" backed by each other down to the US dollar "backed by promises," we find that there is a link to each other, by using bitcoin you can buy/sell without the need to return to those currencies.
People are converting Bitcoin to local currency because they can’t use it to buy daily necessities.
In the future, with the increasing recognition of bitcoin, we will not need these exchange.

Currently, there is a Tether powered by promises to get $ 1 (back up by real money Roll Eyes

)

It's backed up by its infrastructure. Btw, I have heard interesting comment on arguments regarding considerable energy cost to maintain Bitcoin network. When comparing with fiat we should take into account expenses of each government on their armies. Very philosophical, but anyway

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Quote from: Buttermellow on July 20, 2018, 09:57:31 AM

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

It seems to me that yes. It is possible that bitcoin is being back up by real money. Even though its still illegal in some countries there are tools that you can used to convert money to your native currency oncw you need it. For me, bitcoin is a long term investment because as long as you store it the more it increase it value, depends on the market price though.

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Quote from: pinkliar on July 22, 2018, 11:14:59 PM

Actually I asked that before, and what if all of us sell our bitcoin? But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

Exactly. I think so.
BTC is not supported by cash. It is a digital money form and it's electronic numbers that run in the air.
But its value is higher than cash and more convenient than cash, and that proves long-term value is more positive.

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Quote from: Buttermellow on July 20, 2018, 09:57:31 AM

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is having only agreed value and not backed with real money so you can sell your Bitcoin in exchange only to those people who are ready to buy it.

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Quote from: Buttermellow on July 20, 2018, 09:57:31 AM

I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Bitcoin is not supported by real money, but there is a big dependence on real money and the ability to change the crypto currency for real money, because the only way to spend your profits is to exchange for fiat money.

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Quote from: pinkliar on July 22, 2018, 11:14:59 PM

I asked that before, and what if all of us sell our bitcoin? But the price of bitcoin is more than the real money how we can get that? Well, I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

In fact, if we all decide to sell now it is ideally about $131,339,527,800 -----> source https://coinmarketcap.com/
I think there is enough money to do that exchange and more. but when everyone starts selling, the supply will increase, and the demand will decrease, and therefore the price will drop to bring the balance. "down to zero."
if we all decided to sell, no one will trust in the value of bitcoin and so collapse.

When we say "Bitcoin backed by money," it means that it is a guarantee for a certain amount of money. If there is no money, we can not generate more bitcoins.

pinkliar

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Actually I asked that before, and what if all of us sell our bitcoin? But the price of bitcoin is more than the real money how we can get that? Well I don't think bitcoin has backed up by real money because bitcoin is a digital currency that can change in fiat.

EdenHazard

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For those who live in countries that receive bitcoins legitimately will be free to use bitcoin when making transactions and do not need to swap money fiat, this is the first point bitcoin doesn't need to be backed if the state receives bitcoin well.

Then if you live in a country that has not received bitcoin used as a legitimate transaction system, then you need to exchange the bitcoin to the money fiat, the second points bitcoin only need to be backed by money fiat if the country does not receive bitcoin as a payment system.

From both points above there is a 'backed' factor by money fiat if the reason a country has not received bitcoin as a legitimate payment. However, if all countries receive bitcoin well, then bitcoin does not need to be backed by money fiat.

newinbtc

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I understand your point , Bitcoin is not backed by real cash its divital currency and generated through bitcoin mining , we do trading and According to demand Price Come out for buy and sell. If demand is less price will Lower as currently stage.

Real money value is backed by total money holding by government + total value of property + Trading international

You can relate both But its difference is only Botcoin is digital.
We can Buy bitcoin with real money or vise versa

Bitcoin is backed by Mining Hash power ... More you mine more you get....

EVOS

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Bitcoin is not supported with real money, if you ask why every time you sell bitcoin can always be sold, it's because the number of people who want to buy very much. if many who sell the price will go down.

darthmaul

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I understood only 50% part of your post but I know what you asking here. Bitcoin gets its value from the real world investment only. That is the only driving force for its increased or decreased values. The math here is very simple, when people put their money into bitcoin, they buy it, thus they create a demand for it and then slowly this gives it price tag. This process over the time creates more demand and also at the same time supply decreases due to limited coins. So we can generally say that crypto currency are backed up by the real money only.

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i can't quite understand what you're trying to say, but in reality, bitcoin isn't backed by anything, so are the national currencies of different countries except that the latter are backed by their government (protection, aid, projects etc.). In the case of bitcoin - cash conversion, both parties simply 'believe' that both are valuable, or of the same value without having to think that either is backed by anything. The buyer agrees that it is worth X in cash so they make the trade and that's it. The seller receiving the cash after the transaction don't necessarily mean that bitcoin is backed by cash. A trade happened between two parties and that's pretty much it.

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Quote from: erikoy on July 20, 2018, 10:00:33 AM

I bet there are some adjustments on bitcoin market price that could cater all the money being collected from the people who invested on cyrptocurrency. Well i bet that crytpo are being back up by real money but as we all know that not all the people around the world will sell or their crypto and instead they will just hold especially if market price is low.

So pretty much bitcoin and all the crypto is completely backed by fiat as theoretically it would be possible to sell it all for fiat eventually by making the price drop to 0

hugeblack

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When looking at the currencies "real money" backed by each other down to the US dollar "backed by promises," we find that there is a link to each other, by using bitcoin you can buy/sell without the need to return to those currencies.
People are converting Bitcoin to local currency because they can’t use it to buy daily necessities.
In the future, with the increasing recognition of bitcoin, we will not need these exchange.

Currently, there is a Tether powered by promises to get $ 1 (back up by real money Roll Eyes

)

erikoy

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I bet there are some adjustments on bitcoin market price that could cater all the money being collected from the people who invested on cyrptocurrency. Well i bet that crytpo are being back up by real money but as we all know that not all the people around the world will sell or their crypto and instead they will just hold especially if market price is low.

Buttermellow

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I just wonder how bitcoin really works on local exchange around the world because if you will going to need a real money and you have bitcoin definitely you can sell your bitcoin and exchange it with real money in your local to be used. Well if all people around the world would exchange their bitcoin holdings is it possible because bitcoin is being back up by real money?

Topic: Does Bitcoin had a back up by real money? - page 4. (Read 1661 times)