There is no money moving into or out of Bitcoin. Bitcoin IS money.

in #bitcoin6 years ago

You often hear things like "new money is going into Bitcoin" or "people are taking their money out".

This is nonsense.

Every single dollar that somebody puts in Bitcoin, is not going "into Bitcoin" but into the pocket of the seller, i.e. the person he's buying the bitcoins from.

Every single trade consists of two mutual transfers: some fiat (dollars or euros or whatever) moving from the buyer's pocket into the seller's pocket, and some bitcoins moving from the seller's pocket into the buyer's pocket.

So whenever someone buys bitcoins, you could say they're putting some dollars or euros into Bitcoin. Fine. But this also means that someone else is putting that exact same amount of bitcoins into the Dollar or Euro. Nobody can buy without someone else selling, and vice versa. So, bottom line: no money moves into or out of Bitcoin whatsoever.

Just like we don't say there is X billion worth of BTC "in USD or EUR" or "in the fiat market", it also makes no sense to say there is X billion dollars "in Bitcoin".

Sort:  

Go here https://steemit.com/@a-a-a to get your post resteemed to over 72,000 followers.

@kryptosavvy, I gave you an upvote on your first post! Please give me a follow and I will give you a follow in return!

Please also take a moment to read this post regarding bad behavior on Steemit.

Coin Marketplace

STEEM 0.33
TRX 0.11
JST 0.035
BTC 67020.94
ETH 3270.13
USDT 1.00
SBD 4.62