Let's say I buy 1 Bitcoin for $2296.25 USD. I notice that the USD price value of the Bitcoin drops to $2093 USD, and let's say I want the US dollar amount, so I sell the Bitcoin at $2093 USD, whereby 1 BTC is selling for $2093 on the market.
Is that to say that the US dollar supply has deflated and that I am still, nonetheless, close to breaking even (assuming resistance along a network)?
That's the correct interpretation, right?
Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?
In this industry, it is a different thing in thermodynamics, because the 1st law of thermodnynamics occurs in a natural phenomenon while when buying and selling bitcoin in a lower price is not, because the decision of selling it in a lower price is in yours. Thats why your loss is not going to the society to benifit them it might be goes to the people who also bought btc and sell in a higher price.
So if you are going to buy you should wait the right time and you should control your emotions to avoid panicking.