Topic: something that made me curious - page 3. (Read 724 times)
To be honest, it is a theoretical case and it won't happen at all because if the person is losing his entire money then it will be a 100% overnight loss which is not possible at least for now in most of the major cryptocurrencies out there. But if the investment is falling to $900 from $1K then the loss of $100 is the profit of someone who bought Bitcoins at $800 and sold it for $900. In the case of a 100% loss, every investor will lose money.
If you invest in Bitcoin and have a low bitcoin rate, and at that time if you sell your bitcoin then you will surely face the loss. Wait until you get the price and then there will be no possibility of your loss.
The same principles apply to non cryptocurrency investments. In the past, you might buy shares which were worth $10 each. If they got devalued and returned you only $7, it doesn't mean that your money has gone anywhere. Maybe you could say that the amount has shrunk. If you buy Bitcoin and it decreases in value, it's the same thing. Your Bitcoin may have cost you $10,000. With the fluctuating market, the value could shrink to several thousand less. At the same time, It could also increase by several thousand. That's the game. Whether it' stocks and shares or cryptocurrencies, the principles are the same.
Considering the board we're on, I'm going to go ahead and skip the condescension. The answer to this question is tied to one simple economic aspect: market value.
If you bought Bitcoin for $1000, from something/someone, they get your $1000 in fiat, and you get an asset that is worth $1000 in the market. You're not holding $1000, but something that can be sold in the market for $1000. If Bitcoin's market value drops to $0, you still have exactly what it is you paid for, except it's worth less in the market. Your $1000 didn't evaporate into thin air and is staying with the original seller.
It's the same principle if your Bitcoin appreciates. Let's say Bitcoin prices rise to $1200 the next day. You didn't magically gain $200 from nowhere, the asset you're holding (again, your Bitcoin) can simply be sold for $200 more because its market value increased.
What you may be asking is how exactly market value changes. The answer would be different for different assets (for the car example from other posters, you have to consider wear, tear, etc.), but for Bitcoin specifically, the answer mostly lies in the concept of supply and demand. Here is an easy read on the topic.
If you bought Bitcoin for $1000, from something/someone, they get your $1000 in fiat, and you get an asset that is worth $1000 in the market. You're not holding $1000, but something that can be sold in the market for $1000. If Bitcoin's market value drops to $0, you still have exactly what it is you paid for, except it's worth less in the market. Your $1000 didn't evaporate into thin air and is staying with the original seller.
It's the same principle if your Bitcoin appreciates. Let's say Bitcoin prices rise to $1200 the next day. You didn't magically gain $200 from nowhere, the asset you're holding (again, your Bitcoin) can simply be sold for $200 more because its market value increased.
What you may be asking is how exactly market value changes. The answer would be different for different assets (for the car example from other posters, you have to consider wear, tear, etc.), but for Bitcoin specifically, the answer mostly lies in the concept of supply and demand. Here is an easy read on the topic.
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?
HAHA I love this question, it's like primary school all over again
I know you shouldn't answer a question with a question, but let this be a riddle for you that will hopefully make you not only get the answer, but understand.
If you buy a used car for $1000 and try to sell it 2 years later with a higher mileage, will it be worth $1000? Probably not.
Now, if you put it on auction for $800, where does the $200 go?
I know that exchange may be looking suspicious to you, because it's not trading physical items, but the principle is the same.
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?
You already said th $1000 is an investment. so it is governed by principle of markets.
News made the phrases like "lost billion dollars" to make you believe that really a worth of billion dollars wasted?
It is never real Dollars. It is the potential that you lost.
For ex. I have a house that I sell it now for $1000 but after one month if I am getting offers for $800 only , so according to investor /News I will lose $200 but in reality I just lose the only potential $200 but no actual loss.
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?
That is how everything works here so, apart change in the real life changes is normal aswell in the marketplace where the charts got red and green.
Now. Where does it go ? In your wallet
It just stays there it never been stolen just been deducted or increases due to corrections in the process of the investors movements and idea which they trade, sell, hold and buy.
the money he has goes with the bearish market, and goes with the correction market.
I'm sure he never sleep well, he will always think about the capital he has and goes with a bearish market.
so, in my opinion it's better to wait until the market is normal again.
I'm sure he never sleep well, he will always think about the capital he has and goes with a bearish market.
so, in my opinion it's better to wait until the market is normal again.
There's no need to get curious about it, Your money isn't lost you only had a portion of bitcoin or converted your fiat money to bitcoin, But the value decreases so you think that your money had also decreases, But you still had it as a portion of bitcoin, The good thing is you will just need to wait for the price to roll back and increase again and the price might increase as not the way you had expected and it will also gain profit with it when you do, You are investing in cryptocurrency expect the worst and expect the risk and gains in the world of cryptocurrency.
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?
Losing 100% value of btc investment in a day its kinda impossible, though trading always dictate the market, whenever there is a demand the price will automatically go higher , whenever there is a sell out then the price will be lower .
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 $1000 A money go?
Wow!! Just wow!!!
The 1000$ have gone to the person who sold A the coins.
No matter if the price goes up or down, those 1000$ are there, in the pocket of person B.
Think of it like buying anything else a house, a car, an ice cream.
If you buy a 2$ icecream and you eat the 2$ have vaporized?
If you crash the car, if your neighborhood light up your attic, it's the same...
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?
Bitcoin investment is like any other form of economic investment. If you make a profit of $ 1000 and someone is losing $ 1000. If you lose $ 1000, then someone will make a profit. There is always a balance in the economy. You lose money, and someone will make a profit and vice versa.
When A buys bitcoin for $1,000 he or she is actually paying B, When the price drops the money goes to B, If B keeps the money and not transferring it to another person then the money is with B.
Let my clear something here, Mr A investor did not loss his $1000 dollars investment there only a deep in price value which is for some period of time. The investor has to be educated about the value movement of this currency before investing.
if you invest in bitcoin with the amount of $ 1000 and then the price of Bitcoin drops $ 1000 of course if you sell it then you will not get anything including the profit that is only a big loss, the more you wait for the bitcoin price to exceed the price you invest then what you get is profit is not a loss.
he doesn't lose $ 1000, but he only loses the value, this is bitcoin volatility, and that's normal. his assets will be stored safely in a bitcoin wallet.
we will take advantage when the bitcoin market is high again.
we will take advantage when the bitcoin market is high again.
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?
with your confusion like this then you must really learn the system first, actually you don't lose a bit with the number of items you buy, the number of items remains at the value you buy.if you buy btc with a capital of $ 1000 and you get around 0.1 btc then that amount stays in place as long as you don't sell it again, you just wait for the selling price that is higher than the price you bought
The bitcoin ecosystem is complex and homogeneous which if the price drop I think it stays in the system with a zero sum game.
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?
That $ 1000 just got liquidated in the market and to fulfil the dropped market cap it gets distributed over it. Most of the time bitcoin drops in value when people are selling out heavily. When they sell the money gets into their wallet. That is they are converting their bitcoin to fiat and in the process they are taking out the investments and growing the supply and reducing the demand of bitcoin. Thus it looses the market cap and value in the process. Now how much from $ 1000 will loose is dependent upon how much value bitcoin reduced.
There is always a game in the market. If someone loses money, someone will make profits. If someone loses $1,000, the person who sells the coin when he buys it gets the $1,000.
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