Actually money doesn’t disappear. It remains to the person that you gave in return of a Bitcoin. You actually lose the value of the thing you bought which may recover in future
Topic: something that made me curious - page 2. (Read 724 times)
Basically bitcoin is reaching null value which is quite impossible. Mainly the money floats in the market and transferred into the account of seller. When you sell your coin you will get the money from the market.
The bitcoin is converted into fiat currency. You have given 1000 USD to the person who has sold the bitcoin in the market. So basically the money is transferred to people to people.
When you buy a car from a person the person will get the money. Similarly when you have a lose someone will have the profit. The money goes to the seller as far as i understand.
The bitcoins you bought never goes anywhere if there is a loss. The bitcoins stays right there but the price changes. The bitcoin amount remains the same but the price becomes lower. In this case it is better to wait for the price to rise. There is no need to panic.
Compare this situation with buying something with your money. Suppose, you have bought something with your money, but this thing has lost interest among people, so, nobody wants to buy it from you. The thing you bought is still with you but you can't sell it with a good price. In case of bitcoin it is almost the same. But if you wait for a time, you can sell bitcoins at a higher price when the price goes higher.
Actually it doesn't go anywhere. Investing in bitcoin means you have spent your money and converted your money into bitcoin. Now if the bitcoin price becomes lower, it means the converted money has less value. Now, it is your decision that if you will wait for the price to go higher or you will sell your coins at a low price now.
At first, you should truly take in the framework. Purchasing BTC with a capital of $ 1000 and you get around 0.1 BTC then that sum remains set up as long as you don't offer it once more, you simply sit tight at the offering cost that is higher than the value you purchased.
Someone wants to sell bitcoin at $1000, you give $1000 and get one bitcoin, after one day someone wants to buy bitcoin at $500 and you give your bitcoin to him and he gives you $500, now you have $500.
There's no compelling reason to get inquisitive about it, Your cash isn't lost you just had a bit of bitcoin or changed over your fiat cash to bitcoin. The good thing is you simply need to sit tight at the cost to move back and increment again to pick up the benefit with it.
That $ 1000 just got exchanged in the market and to satisfy the dropped market cap it gets dispersed over it. More often than not bitcoin drops in esteem when individuals are offering out vigorously. When they offer the cash gets into their wallet. That is they are changing over their bitcoin to fiat.
There is a zero possibility of losing all your money. At least there will be some value left which 'A' can get back by selling the Bitcoin he owns. The way you are representing the case is wrong because it is not about losing the money rather here, the Bitcoin loses it's value and after being valued at a less price 'A' has to sell it and make a loss out of it.
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 $1000 A money go?
In this situation if you invest in bitcoin 1000$ and lost all $, it can mean one thing - bitcoin = 0$ )
Most you have suffered losses, but the funds must remain... Or you play in casino)
The way you are calculating is wrong. Take the example of share market, you buy a company's share which is priced at 500$. After one month the company starts to have bad reputation and due to that the value of their share decreases in the market and gets priced at 50$. So, now you can decide to sell it at a 450$ loss or you can keep holding it till it increases again given that the company can overcome that situation.
A' will not lose all his money as the value of Bitcoin can come as close to 1$ but never equal to zero. So, he can either decide to sell his coin and accept the loss he has made due to the value getting lowered or he can wait till the value increases over time and sell it for a good amount of profit. It's like an investment, you are paying for the perceived value.
This curiosity is completely fine. But the money does not go anywhere. It just fluctuates in terms of its value. It either improves or worsens.
Your 1000$ goes to the guy who sold you a Bitcoin worth 1000$ before it dropped to zero. He got youe money, you got the air.)
The money does not go anywhere. It just loses its value. It's like the entire appreciation and depreciation of currency.
Drop of bitcoin price is very common in crypto market but again A can reclaim it when the price will raise. But he didn't entirely lose $1000. A just lost the price value.
Every single time when the price of Bitcoin drops and we lose a portion of our investments, they go straight to satoshi's wallet, and he uses them to travel the world and have fun. 
And every time the price grows, he takes loans to pay the profits that people have earned from their investments. It is a very complex thing, don't even ask!
And every time the price grows, he takes loans to pay the profits that people have earned from their investments. It is a very complex thing, don't even ask! Jump to: