Topic: something that made me curious (Read 768 times)
Think back, if A invested $ 1000 in bitcoin, the next day the bitcoin price increased and A got $ 2000. Ok, you probably already understand.
the price has to zero for A to lose his money which is not going to happen!
generally speaking the money doesn't go anywhere. you converted your money to something that lost value. if you have trouble understanding how it works then imagine something more common like a new car that you buy and then have an accident with and its price drops, or when you buy shares of some company at $10 a piece and that company doesn't perform well and the share price drops to $9, your investment doesn't go anywhere it just would have a little less value. or the same way, if the price of it goes to $11 you didn't create money from thin air, that item you held is now worth more.
so when you sell it to someone else on the market in first case you lose a little money and in second case you make a profit.
generally speaking the money doesn't go anywhere. you converted your money to something that lost value. if you have trouble understanding how it works then imagine something more common like a new car that you buy and then have an accident with and its price drops, or when you buy shares of some company at $10 a piece and that company doesn't perform well and the share price drops to $9, your investment doesn't go anywhere it just would have a little less value. or the same way, if the price of it goes to $11 you didn't create money from thin air, that item you held is now worth more.
so when you sell it to someone else on the market in first case you lose a little money and in second case you make a profit.
I don't know if this is entirely true. Image I buy all the bitcoins there is. All the market cap of the bitcoin is then distributed to everyone who had bitcoins before. When the bitcoin price drops, my money is lost, and I am poor, but the money doesn't just disappear, the people who sold it to me profited. So the actual currency that is inserted in the crypto market has to go to someone else.
If the A invests $1000 in bitcoin, then the next day the price of bitcoin drops dramatically and the A loses $1000, which makes me curious, where does the $1000 A money go?
I think you asked your question with an inappropriate example.
Let me clear your question with a right example:-
If A invested in bitcoin at price of $1000 that means someone sold his/her bitcoin to person A, cause you can only buy bitcoin or cryptocurrency when someone else sell his/her bitcoin or cryptocurrency.
Money doesn't go any where its just keep moving from one hand to another.
If you buy a piece of bitcoin at $100 and you sell that bitcoin at $1000 that means you profited $900, and that $900 comes from that person who buy your bitcoin at $1000.
The simple trading is totally depends on demand and supply if demand increase then price will go high and if demand decrease then price will go down.
It can be tricky thinking your money disappear but actually it goes nowhere. What is at play is the change in price/value of bitcoin which determines the value of what you bought. As the price changes, your investment also responds in the direction of the bitcoin price.
What has changed is the value of the cryptocurrency (bitcoin) invested in, the money invested increases or decreases in line with the current value of the cryptocurrency. If the value of the cryptocurrency increases by 100%, your investment will equally increase at same rate and vise versa. The money goes nowhere.
I became much curious in cryptocurrency when a friend of mine bought a car within 3 months of being in crypto.
A will lose the Bitcoin number, maybe so. But that bitcoin will exist in the cryptocurrency space and wait for the next exchange.
If the A invests $1000 in bitcoin, then the next day the price of bitcoin drops dramatically and the A loses $1000, which makes me curious, where does the $1000 A money go?
This just prove to me that there are some here that jumped into crypto market without the basic knowledge. So just what if you really loss that amount and surely you gonna spam the forum while cursing bitcoin.
Basically, your $1000 didn't loss as the value had just decrease and obviously, you'll just loss when you sell under the price you bought. And as the volatility is concern, it will bounce back into its initial price and somehow will pass beyond your capital. Your $1000 didn't go anywhere and it's just be there as long as hold it.
Crypto investment is riskier from what you think and if you didn't know how to deal with volatility, then it's game over.
If you invest your amount in Bitcoin and sell it at a lower price, then your loss you amount. But wait and see when the price of Bitcoin is high in the market. If you sell at that time then you will be definitely benefited.
i don't think it is possible to invest in bitcoin and lose everything. this situation you may not face in your life.
I am inquisitive about this type of investments. I also curious about the tokens I have participated in getting to other trading floors. I always like to invest new ICO proggarm.
Money will not go anywhere. Here you can just convert money. If you sell at a lower price then you will be facing losses. But you have to wait if you want to profit. its future are very good.
Do not go anywhere. You can transfer money here in bitcoin. And if you sell Bitcoin at a lower price then you'll be losing. You have to wait, when the price increases, you will be able to sell it. it will make your profit.
i think it's do not go anywhere because You can transfer your money here in bitcoin. And if you sell Bitcoin at a lower price then it will make lose for you. if You wait a little bit time price will be increase you will be able to sell it. it will make your profit.
well to be honest a curious investor can definitely achieve success in this field cause his curiosity will help him to understand the market more clearly , this kinds of attitude is important for developing a better market
The money didn’t go anywhere but the BTC that has been bought just lost its value. Value of something is always dependent on the demand. If BTC is not demanded at all then its value will be zero.
When you pay a price for a Bitcoin it becomes the value of it. So it’s not that the value vanishes. It fluctuates but can be recovered in future. The person who sells the BTC keeps the money
Of course, it is absorbed by the seller. As the seller continues to sell coins at a low price, this will cause the price of the coins you buy to fall rapidly!
If the A invests $1000 in bitcoin, then the next day the price of bitcoin drops dramatically and the A loses $1000, which makes me curious, where does the $1000 A money go?
actually, the money doesn't go anywhere. it stays in the system. its just that, during the time that you invest. the price of btc is higher than the price of the btc that you are seeing the next day. it losses value but it doesn't mean the movement is always like that. if more investor will be interested on btc, the value of the btc will also rise. remember, the higher the demand, the higher the product value become. as long as you dont sell your btc when the market price is lower, you are not losing. moreover, if you sell it when the market is high, you will get a decent profit.
A very interesting question! I am also curious to know the answer. I don’t really understand where money goes and how the chain works. I hope anyone gives a good answer
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