Wont the amount of bitcoin in circulation vanish? - page 2.

Fesatmas

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Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

Jack sells Bitcoin for a car that has an updated version year after year. Removes Bitcoin from his wallet which has non-renewable value. After the ownership of the Bitcoin left, the price of the Bitcoin he bought was over when it was cheap. No one can go back to the previous price and if Jack wants to have it back then queue up at the current price.

It's as simple as that, what you have let go of is no longer yours. Someone else has an additional portfolio that Jack is selling. Ironic isn't it? only car ownership he can be proud of right now.

avikz

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Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

Bitcoin! Bitcoin!! Bitcoin!!! We’re enthusiasts and solely want to know the future of this technology. I believe Satoshi Nakamoto the founder original intention for creating Bitcoin is to develop a Peer-to-Peer Electronic Cash System. This electronic cash system can be used for daily payment and cash circulation in general. It is believed that the total amount of bitcoin in circulation is 21 million bitcoin that exist.

That was the initial idea for sure but we have already deviated from that path. Bitcoin is nothing but an investment right at this moment and that's why we are seeing this madness from almost all segments of the society. It has purely became an accumulation game!

Quote

Many capitalized on the worth of bitcoin and use it as a store of value. they end up trading their bitcoin, converting it to physical currencies (Fiat) to solve material problems like buying properties. If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.
Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

These kind of things won't hurt bitcoin. Because bitcoin is not water that will vaporize in the air. It is just exchanging hands. When a transaction happens, there is a seller and on the other side, there must be a buyer. So it is just changing ownership and nothing else.

sirminesalot

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Yes the real circulation supply won't be exact 21 mils at the end because there must be some wallets that "lost" because it's already too long not doing any transaction and probably the owner of the wallet lost it or passed or something like that, we could consider that as a natural "burn".
But there are also the real "burn" when someone sends his btc to burn wallet and the bitcoin won't be recover forever. And i think it's good for the holders because the more the bitcoin "vanish" the more valueable the thing is.

hatshepsut93

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The only way that Bitcoin is disappearing is when someone sends it to a burn address or loses their private keys or dies without giving anyone access to the keys. The rate at which t his happens is extremely slow compared to the total supply, and because Bitcoin is highly divisible and can theoretically be even made more divisible, this likely won't even be a problem for the network.

D-law

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Quote from: NeuroticFish on October 28, 2021, 10:18:49 AM

Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

Bitcoin! Bitcoin!! Bitcoin!!! We’re enthusiasts and solely want to know the future of this technology. I believe Satoshi Nakamoto the founder original intention for creating Bitcoin is to develop a Peer-to-Peer Electronic Cash System. This electronic cash system can be used for daily payment and cash circulation in general. It is believed that the total amount of bitcoin in circulation is 21 million bitcoin that exist.
Many capitalized on the worth of bitcoin and use it as a store of value. they end up trading their bitcoin, converting it to physical currencies (Fiat) to solve material problems like buying properties. If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.
Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

You somehow seem to not understand that when somebody "convert bitcoin into fiat" doesn't burn that bitcoin, instead it ends up in the wallet of somebody else who have paid the right fiat amount for it.
So if Jack's wallet is empty, it only means that Peter now has some more bitcoins. And it's not detrimental, it's actually the reason Bitcoin was invented.

Also you didn't read. For now there are 18.8M bitcoins mined. There will have to pass many years until all 21M bitcoins will be mined. Also because some people have died or made mistakes, some bitcoins are lost forever hence not in circulation.

I was totally lost in thought about the perfect reply until I saw this, this is very educative@Op thanks for the response.
Same flow of bitcoin continues until bitcoin is used totally right ?
What I meant is that, bitcoin is not detrimental or lost in this process right,the process/chain flows till total adoption of bitcoin use huh ? ?

Ucy

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Well, it would have been better if people sold to invest in things that are beneficial to Bitcoin. For example, you sell to buy something from people that accept Bitcoin, or use the Bitcoin to buy from them directly. If you need to buy expensive things, better to buy those that earn you more Bitcoin and do not rely on the centralized systems to operate...more like independent businesses.
I think this is better done in peer-to-peer manner on decentralized and transparent platforms.

If everyone is contributing to Bitcoin and not just benefitting from it, we could end up creating robust self-sustaining economy for Bitcoin, as it should be.
*You earn Bitcoin as independent human and also pay independent businesses/people.

GreatArkansas

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If there is a seller, there will always be a buyer too.
Using these popular people selling their Bitcoin will make Bitcoin useless. For sure each of us got different reasons why we bought Bitcoin in the first place, some could be because of investment, some are for technology or some are just for nothing (because they don't know how Bitcoin works).

So using "Person A sold their Bitcoin", is not a proper way of defining what Bitcoin is and how Bitcoin works.

I think too what OP saying is bitcoin in circulation will vanish if Bitcoin is totally lost like private keys lost so that the Bitcoin will not be accessible at all, but then again it's still part of the circulation or supply.

pawanjain

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Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

Bitcoin! Bitcoin!! Bitcoin!!! We’re enthusiasts and solely want to know the future of this technology. I believe Satoshi Nakamoto the founder original intention for creating Bitcoin is to develop a Peer-to-Peer Electronic Cash System. This electronic cash system can be used for daily payment and cash circulation in general. It is believed that the total amount of bitcoin in circulation is 21 million bitcoin that exist.
Many capitalized on the worth of bitcoin and use it as a store of value. they end up trading their bitcoin, converting it to physical currencies (Fiat) to solve material problems like buying properties. If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.
Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

When you buy something from a store and pay fiat to the cashier does the fiat money get vanished ? No right.
Same thing happens with bitcoin and when you exchange it for fiat you are just giving your bitcoins to someone who is giving you the fiat money.
The bitcoins remain in the wallet of the person you got the fiat from. So it is basically still present in the circulation.
The number of bitcoins will remain in circulation unless and until they are lost by the owner.

mk4

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Quote from: Lucius on October 28, 2021, 11:07:15 AM

When someone after a year on the forum draws this conclusion, I wonder what that person has been doing all this time? You should start the crypto school again and start with the basics - Chapter 1 -> https://en.wikipedia.org/wiki/Bitcoin

Probably needs to go back further and understand how marketplaces of intangible assets work lol. Though I guess the UIs of the likes of Coinbase are so good that it makes some people think that Coinbase(or maybe Satoshi lol) themselves are the ones buying and selling the coins.

Not to belittle you though, OP. There's no such thing as a stupid question, and you're a tad bit smarter now. Wink

Lucius

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Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.

When someone after a year on the forum draws this conclusion, I wonder what that person has been doing all this time? You should start the crypto school again and start with the basics - Chapter 1 -> https://en.wikipedia.org/wiki/Bitcoin

Another misconception I have often read is about halving, as some think it means that every 4 years the total supply of BTC is reduced by 50% - which is somehow in line with what the OP thinks, the conversion of BTC -> fiat and halvings leads to the complete disappearance of Bitcoin Roll Eyes

alpamar99

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when someone sells their bitcoins and converts them to fiat it doesn't mean the bitcoins will disappear, that's not the concept my friend.
You don't forget the trading system where when someone sells there must be someone who buys it.
and in bitcoin it's like that when they sell their bitcoin on the other hand the bitcoin is bought by someone else and the cycle continues like that it will not disappear.
and in the case of jack who sells his bitcoins to buy mercedes, it means that jack has indeed lost his bitcoins but on the other hand there are people who increase their bitcoins from the results of buying bitcoins.

mk4

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Your bitcoin doesn't go into the oblivion whenever you sell. For every seller, they should also be a buyer. The same way when you buy/sell stocks or even when you sell on eCommerce platforms, sold assets just go to new owners. There isn't such thing as a sort of "central bitcoin exchange" that buys/sells the coins.

NeuroticFish

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Quote from: Crptomagma on October 28, 2021, 10:09:43 AM

Bitcoin! Bitcoin!! Bitcoin!!! We’re enthusiasts and solely want to know the future of this technology. I believe Satoshi Nakamoto the founder original intention for creating Bitcoin is to develop a Peer-to-Peer Electronic Cash System. This electronic cash system can be used for daily payment and cash circulation in general. It is believed that the total amount of bitcoin in circulation is 21 million bitcoin that exist.
Many capitalized on the worth of bitcoin and use it as a store of value. they end up trading their bitcoin, converting it to physical currencies (Fiat) to solve material problems like buying properties. If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.
Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

You somehow seem to not understand that when somebody "convert bitcoin into fiat" doesn't burn that bitcoin, instead it ends up in the wallet of somebody else who have paid the right fiat amount for it.
So if Jack's wallet is empty, it only means that Peter now has some more bitcoins. And it's not detrimental, it's actually the reason Bitcoin was invented.

Also you didn't read. For now there are 18.8M bitcoins mined. There will have to pass many years until all 21M bitcoins will be mined. Also because some people have died or made mistakes, some bitcoins are lost forever hence not in circulation.

Crptomagma

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Bitcoin! Bitcoin!! Bitcoin!!! We’re enthusiasts and solely want to know the future of this technology. I believe Satoshi Nakamoto the founder original intention for creating Bitcoin is to develop a Peer-to-Peer Electronic Cash System. This electronic cash system can be used for daily payment and cash circulation in general. It is believed that the total amount of bitcoin in circulation is 21 million bitcoin that exist.
Many capitalized on the worth of bitcoin and use it as a store of value. they end up trading their bitcoin, converting it to physical currencies (Fiat) to solve material problems like buying properties. If this action continue like this and people keep selling their bitcoin for material possessions. Wont the amount of bitcoin in circulation depreciate or even vanish? Because bitcoin is been converted to fiat currency and consumed for material things.
Jack just sold the bitcoin in his wallet to buy 2020 GLK Mercedes Benz, leaving the wallet empty. Is this action not detrimental to bitcoin?

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