When you put it on the table in front of you, the coins will not increase, but the value other people offer, for it will increase.
That is how I explain it to friends. The fact that they cannot see it, confuse them too.
Topic: One More Probably Stupid Duh Question (Read 1061 times)
Best to visualize it, as some thing physical, let's say a real coin.
When you put it on the table in front of you, the coins will not increase, but the value other people offer, for it will increase.
That is how I explain it to friends. The fact that they cannot see it, confuse them too.
When you put it on the table in front of you, the coins will not increase, but the value other people offer, for it will increase.
That is how I explain it to friends. The fact that they cannot see it, confuse them too.
When you buy one BTC you will still have the BTC even if the price rises or falls.
Think of it of like owing shares in a stock. If the price per share increases then you still have the same number of shares and will have earned a profit. The same concept applies to Bitcoin.
Think of it of like owing shares in a stock. If the price per share increases then you still have the same number of shares and will have earned a profit. The same concept applies to Bitcoin.
Thanks, it cleared it up. It was the multiple wallets that made me second guess the intuitive, logical comprehension but I get it now and appreciate your clarification.
A BTC is a BTC no matter how many wallets you have. Using your example of a dollar being broken down into quarters/dimes/nickels, etc, let's assume you have a dollar bill. You break that dollar into 4 quarters, and you store each quarter in a different place: the pocket of your jeans, the nightstand by your bed, the drawer in your desk and the piggy bank. If you move all of those quarters to your jeans pocket, you've still got 4 of them.
If you have 4 BTC wallets, each with 0.25BTC you still own a total of 1BTC.
Thanks, it cleared it up. It was the multiple wallets that made me second guess the intuitive, logical comprehension but I get it now and appreciate your clarification.
I've got 500 "in" btc but do I now have an accumulated 1 btc? Like if I moved all that into a single wallet would coinbase now tell me I have 1 btc?
Forget the dollar amount. That is confusing you. As I suggested before, think of BTC as pieces of something.
If you bought 0.4 BTC two weeks ago, and last week you bought 0.3 BTC, and today you buy 0.2 BTC, then you have 0.9 BTC because 0.4 + 0.3 + 0.2 = 0.9. That's how much you bought and that's how much you have.
If the exchange rate for BTC changes, then the dollar value of your 0.9 BTC will change:
| Value of 1 bitcoin | Value of your 0.9 bitcoins |
| ----------------- | -------------------- |
| $100 | $90 |
| $400 | $360 |
| $500 | $450 |
| $600 | $540 |
| $1000 | $900 |
I hope that answered your question.
LOL this is going a different direction I think.
I was mostly asking about the accumulation itself, like "pocket change" all adds up to a dollar or ten dollars. I realize each piece/coin has its own value in relation to the market value/price. It's looking at how it's handled in coinbase or one of those options, and I think the multiple wallet thing was part of the problem I was having trying to understand what was happening.
btc price: 500
wallet a - 250 btc
wallet b - 100 btc
wallet c - 100 btc
wallet d - 50 btc
I've got 500 "in" btc but do I now have an accumulated 1 btc? Like if I moved all that into a single wallet would coinbase now tell me I have 1 btc?
It was coming from the suggestion to just buy smaller amounts when you can't buy "whole" bitcoins, and if they will add up into a "whole" bitcoin or if you'd always just have smaller fragments of a whole no matter what.
Apologies if that confused everyone (the way it did me.)
I was mostly asking about the accumulation itself, like "pocket change" all adds up to a dollar or ten dollars. I realize each piece/coin has its own value in relation to the market value/price. It's looking at how it's handled in coinbase or one of those options, and I think the multiple wallet thing was part of the problem I was having trying to understand what was happening.
btc price: 500
wallet a - 250 btc
wallet b - 100 btc
wallet c - 100 btc
wallet d - 50 btc
I've got 500 "in" btc but do I now have an accumulated 1 btc? Like if I moved all that into a single wallet would coinbase now tell me I have 1 btc?
It was coming from the suggestion to just buy smaller amounts when you can't buy "whole" bitcoins, and if they will add up into a "whole" bitcoin or if you'd always just have smaller fragments of a whole no matter what.
Apologies if that confused everyone (the way it did me
.)Oh. Now that you've explained it, the answer is yes.
If you buy 0.5 BTC and leave it in a wallet and then someone sends 0.1 BTC to that wallet, that wallet balance would now be 0.6 BTC.
You could then send that 0.6 BTC to another wallet of tours containing 1 BTC. This would then give the wallet a new balance of 1.6 BTC.
The wallets combine all the BTC in them to give you a total BTC balance. Pretty much just like the way your bank account does.
Hope that answers your question
LOL this is going a different direction I think.
I was mostly asking about the accumulation itself, like "pocket change" all adds up to a dollar or ten dollars. I realize each piece/coin has its own value in relation to the market value/price. It's looking at how it's handled in coinbase or one of those options, and I think the multiple wallet thing was part of the problem I was having trying to understand what was happening.
btc price: 500
wallet a - 250 btc
wallet b - 100 btc
wallet c - 100 btc
wallet d - 50 btc
I've got 500 "in" btc but do I now have an accumulated 1 btc? Like if I moved all that into a single wallet would coinbase now tell me I have 1 btc?
It was coming from the suggestion to just buy smaller amounts when you can't buy "whole" bitcoins, and if they will add up into a "whole" bitcoin or if you'd always just have smaller fragments of a whole no matter what.
Apologies if that confused everyone (the way it did me.)
I was mostly asking about the accumulation itself, like "pocket change" all adds up to a dollar or ten dollars. I realize each piece/coin has its own value in relation to the market value/price. It's looking at how it's handled in coinbase or one of those options, and I think the multiple wallet thing was part of the problem I was having trying to understand what was happening.
btc price: 500
wallet a - 250 btc
wallet b - 100 btc
wallet c - 100 btc
wallet d - 50 btc
I've got 500 "in" btc but do I now have an accumulated 1 btc? Like if I moved all that into a single wallet would coinbase now tell me I have 1 btc?
It was coming from the suggestion to just buy smaller amounts when you can't buy "whole" bitcoins, and if they will add up into a "whole" bitcoin or if you'd always just have smaller fragments of a whole no matter what.
Apologies if that confused everyone (the way it did me
.)
The quantity of the good stays the same. If you buy 5 BTC, you will have 5 BTC. The only thing that the market can change is the value. So 5 BTC could be worth $2500 today, and then rise to $3500 tomorrow. When it rises to $3500, you'll still only own 5 BTC. Each BTC will just be worth more individually
Thanks. That's what I was assuming...but when I started looking at the example, like day 1 50% worth of bitcoin and another 50% worth the next day, does it add up to 1 btc or do I valuate it in terms of half at all times...
If you have 0.5 BTC, it stays the same amount forever, regardless of what the USD price is.
People seem to forget this and concentrate too much on the fiat value.
Quote
Disclaimer - I'm presuming this is as intuitive as it appears and would work the same as any other currency, such as this example:
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
1 BTC on monday is 1 BTC on friday.
1 USD on monday is 1 USD on friday.
1 YEN on monday is 1 YEN on friday.
What fluctuates is the exchange rate. This fluctuates with fiat currency as well.
For example see: http://econographics.files.wordpress.com/2012/11/euro-dollar-exchange-rates.jpg
In 2008 on euro would be $1.60, in 2010 it would get to $1.20.
In other words if you have 100.000 euro in 2008, it would be 160.000$, but in 2010 it would be $120.000, a difference of 40.000$
Another example , 1 BTC in 2013 is ~ 123$ , now it is 564 $.
Thanks. That's what I was assuming...but when I started looking at the example, like day 1 50% worth of bitcoin and another 50% worth the next day, does it add up to 1 btc or do I valuate it in terms of half at all times...
If you have 0.5 BTC, it stays the same amount forever, regardless of what the USD price is.
Thanks. That's what I was assuming...but when I started looking at the example, like day 1 50% worth of bitcoin and another 50% worth the next day, does it add up to 1 btc or do I valuate it in terms of half at all times...
Disclaimer - I'm presuming this is as intuitive as it appears and would work the same as any other currency, such as this example:
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
Replace "btc" with "piece of gold" and I think it will be clear. ...
Ex: market price for 1 piece of gold is $100, with variation fluctuations
I buy 1 piece of gold at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more piece of gold for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2 pieces of gold and change.
If Friday comes and a piece of gold shoots up to $360, do I now have just one piece of gold or is each of my pieces of gold worth 360?
As you bought three coins@100, 110 and 150. so now each of your coin has a value of $360, but the profit on each coin will be different i.e 360-100=260, 360-110=250, 360-150=210. so now your total profit becomes 720 which is equal to two coins at the current rate. but as you had three coins, you will be left with three coins at the end.
Disclaimer - I'm presuming this is as intuitive as it appears and would work the same as any other currency, such as this example:
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
100 pennies is $1 and $1 is worth $1, so if I have 4 quarters I have a dollar, or if I have 10 dimes I have a dollar, etc.
But I got to messing with the btc calculator and looking at the market price and then I think I just got overloaded confused here so need a gentle (or harsh) kick on this one
Ex: market price for 1btc is $100, with variation fluctuations
I buy 1 btc at $110 on Monday.
By Tuesday, it's at $150
Wednesday I buy one more btc for $150
I buy $100 on Thursday so I've spent a total of $360.
I'm assuming I have 2btc and change.
If Friday comes and btc shoots up to $360, do I now have just one btc or is each of my btc worth 360?
I know the answer in our standard currency but this is bitcoin and I'm not sure how to handle it...figured it would be the same but not positive.
Thanks for the clarification
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