I don't understand one thing about Bitcoin. Suppose I bought one bitcoin years ago for $500. Now, suppose I dumped it last year for $15,000. Where did $14,500 came from? How does Bitcoin generate money?
I don't understand one thing about Bitcoin. Suppose I bought one bitcoin years ago for $500. Now...
Okay I know Veeky Forums is retarded but this has to be a joke.
>doesn't understand supply and demand
it doesnt. its a speculative asset.
its actually not a bad question.
The price of a stock is determined by its expected discounted future dividends. Profitability (dividends) rise to price of the stock increases. A lot of coins (not necessarily btc) are just selling equity in their companies essentially but they dont make any money so its retarded
It's not supply and demand. It's what people are willing to pay. It's not like gasoline, it's more like a trading card
Someone wants to buy it from you for 15k. So you sell him 1 Bitcoin and he gives you 15k
i buy 10 bananas for 10$
bananas are scarce bad banana weather
i sell for 20$
>its actually not a bad question.
>Now, suppose I dumped it last year for $15,000. Where did $14,500 came from? How does Bitcoin generate money?
You bought it from someone who was willing to sell it to you for $500. You sold it later to someone who was willing to pay you $15,000 for it. The person who bought it from you either has some use for bitcoin (maybe they want to buy something online with it or send money overseas), or just believes they can sell it later for more than $15,000 to someone else.
Bitcoin doesn't generate money. It just loses a lot less value than legacy fiat.
This is a valid question. Veeky Forums likes to stay dumb so I bet you'll get ridiculed.
Imagine you have an apple which you bought for 20c. Now, I come to you and I really want an apple. I tell you I'll buy it from you for 30c and you accept. You've now made 10c and I've got my apple. The apple's last price is 30c. If someone now offers me 50c for the apple and I sell it, I made 20c and the apple's last price is was 50c.
Now, what about price drops? Say I no longer want the apple, so I want to sell it. I try to sell it back to you for 30c, you say "no thanks it's not worth more than 15c for me". So someone else tries to sell you a similar apple for 25c, you say no, then 20, you say no, then 15, you say yes. In this microscopic market of just you and your ever-lasting, non-perishable apples, the price has now dropped to 15c.
So you buy the dip and wait till the process repeats, you sell at the top, and keep going until you make a trillion dollars.
The only think buy and sell orders are is people saying "Hello, will you sell me this much for this price please?"
And the same principle applies to every market ever.
>The only think buy and sell orders are
It is very similar to beanie babies OP.
There is a finite number of these crabs and at one point someone paid $10, 000 usd for it because it was in high demand.. Eventually, for whatever reason, people stopped caring about beanie babies and the owner is left holding a crab that's worth a few dollars now.
I dont get it
I should have added, after the first paragraph:
So imagine an innocent bystander also bought an apple at 20c but just left it in his fridge. He goes outside and sees apples are being sold for 50c! He goes inside and gets his apple and sells it to someone willing to buy it for 50c. When he does, he will have turned his original 20c into 50c.
In OP's case, by holding from $500 to $15,000, he was the innocent bystander just holding onto his apple until he saw a chance to sell it for waay more expensive. All because other people were willing to buy his monopoly money for $15,000.
good job i think you explained nicely.
I don't understand one thing about Picasso paintings. Suppose I bought one Picasso painting years ago for $500. Now, suppose I dumped it last year for $150,000,000. Where did $149,999,500 came from? How do Picasso paintings generate money?
Supply and demand is where the price came from.
The value is in the technology itself
End of last year a large number of ICOs were existing profitable companys just wanting some of that free ICO money. I seen a handful raise $10m - $30m off essentially just integrating a token into their payment platform for their existing ecommerce site that accepted bitcoin already under the entire premise that an erc20 token helps them reduce fees and cut out da middle man.
why'd you keep ur apple in the fridge tho
>getting real tired of Veeky Forums his autistic ways with things
>it's not supply and demand, its just supply and demand
wew lad you cannot possibly be this retarded
Thanks user, good to see an actual well thought out response every now and then.
Cold apples are the best apples. Crunchier for longer.
It's a terrible question. OP isn't suited for investing in crypto.
checked apple dubs of absolute madman truth
I almost had a heart attack reading this, oh my god. It feels so horrible, how is this possible. I dont even...