sort of, it’s actually more complicated than that.
For reasons known to banks, and primarily banks, putting money into bitcoin is really easy, converting money out of bitcoin is a lot and i mean, a lot harder.
Pulling money out of bitcoin is essentially money laundering as far as your bank cares. A lot of early investors in bitcoin, still hold most of their money as bitcoin, or other crypto, because getting a payout of several million dollars is not very easy, from the exchanges, or the bank, which is not going to be particularly happy with you randomly declaring you have a few million in bitcoin.
There’s also the convenience factor, having some amount of money in your bitcoin wallet is useful, in the same way that having cash in your wallet is also, generally useful. Especially if you more regularly use it.
For that purpose, it doesn’t matter if the exchange rate is $100k per bitcoin, or $1 per 100 k bitcoins. Since you’re spending it as soon as you get it, you don’t care.
this would technically be true assuming this to be statically true, it’s not. As evidenced by the value of bitcoin changing. People are clearly willing to put money into bitcoin, and then hold it, to a significant enough degree that it causes changes in the value. That’s the whole point in speculative investment, that’s where that value comes from in the first place, it’s a self reinforcing cycle.
The dollar value of bitcoin only matters to people who are holding it as some kind of “investment”. If those people become convinced that the next sucker is about to cash out, they might cash out before that sucker, and the price of bitcoin could plunge to zero.
this isn’t actually true at all, the dollar value of bitcoin changes so rapidly it’s important to do transactions fairly quickly, and with an accurate enough conversion, that at the time of the transaction, the nominal value is closely achieved.
If those people become convinced that the next sucker is about to cash out, they might cash out before that sucker, and the price of bitcoin could plunge to zero.
theoretically maybe, but this would require literally everybody to cash out of bitcoin, just look at stock markets, when the valuation of a company rises higher than it should, it will come back down, and when it’s lower than it should, likewise, it rises to where it should.
If bitcoin DID magically lose ALL investors, it would be stupid for both you and me to not invest in millions of bitcoin at the price of 0 dollars, considering that it’s such a massive crypto currency, it’s incredibly hard for it to get rugged or pulled, and will most certainly continue to see use, causing it’s price to rise in the future, being an incredibly productive investment for us.
Bitcoin might always exist, but it might always exist like old Italian Lira coins. They’re cool collectors items, but have almost no real value anymore.
that’s another potential, but you would have to see the exchanges die completely, which is again, unlikely. Transaction fees are a good business to be in.
sort of, it’s actually more complicated than that.
For reasons known to banks, and primarily banks, putting money into bitcoin is really easy, converting money out of bitcoin is a lot and i mean, a lot harder.
Pulling money out of bitcoin is essentially money laundering as far as your bank cares. A lot of early investors in bitcoin, still hold most of their money as bitcoin, or other crypto, because getting a payout of several million dollars is not very easy, from the exchanges, or the bank, which is not going to be particularly happy with you randomly declaring you have a few million in bitcoin.
There’s also the convenience factor, having some amount of money in your bitcoin wallet is useful, in the same way that having cash in your wallet is also, generally useful. Especially if you more regularly use it.
this would technically be true assuming this to be statically true, it’s not. As evidenced by the value of bitcoin changing. People are clearly willing to put money into bitcoin, and then hold it, to a significant enough degree that it causes changes in the value. That’s the whole point in speculative investment, that’s where that value comes from in the first place, it’s a self reinforcing cycle.
this isn’t actually true at all, the dollar value of bitcoin changes so rapidly it’s important to do transactions fairly quickly, and with an accurate enough conversion, that at the time of the transaction, the nominal value is closely achieved.
theoretically maybe, but this would require literally everybody to cash out of bitcoin, just look at stock markets, when the valuation of a company rises higher than it should, it will come back down, and when it’s lower than it should, likewise, it rises to where it should.
If bitcoin DID magically lose ALL investors, it would be stupid for both you and me to not invest in millions of bitcoin at the price of 0 dollars, considering that it’s such a massive crypto currency, it’s incredibly hard for it to get rugged or pulled, and will most certainly continue to see use, causing it’s price to rise in the future, being an incredibly productive investment for us.
that’s another potential, but you would have to see the exchanges die completely, which is again, unlikely. Transaction fees are a good business to be in.