If you are someone who believes that Cryptocurrency is the future currency, then you must be following some regular updates on the same. Bitcoin is the first-ever cryptocurrency and if you have the knowledge, it is having the highest value. Despite being very high, people still love to invest in Bitcoin only. But did you any time observe that as the price of Bitcoin goes high, there will be a lot of debates and news running around it. Those who have been in the traditional share marketing and trading will understand this in a better way.
One important point that is always in the debate about Bitcoin is where Bitcoin money goes? Yes, this is something very important for us to understand as people want to know how to cash out your Bitcoin holdings.
Where does the money go?
Most of us have this question about where does all the money that we transfer for buying Bitcoin goes? But if you apply a little logic, then you can easily get an answer to this question. When a person is buying Bitcoin worth $10K, then at the same time someone else is selling off Bitcoin worth $10K or more. That means, it is the same as any other kind of currency transaction.
Once the Bitcoin seller sells off, they can now keep the money in their wallets, withdraw them, spend them, buy things online, and do anything of their choice. They can also choose to re-invest the money in Bitcoin.
So, one important thing you need to understand is that it is not the investments that increase the price of Bitcoin or any other cryptocurrency. The volume will not decide the price. Many other factors decide the price of Bitcoin in the world of finance. The activities related to law, businesses, and other government decisions will impact the price of Bitcoin. It can sometimes go high or sometimes go low. So, whether you just keep buying or selling the bitcoin, it does not show any kind of effect on its price. The money that you invest will keep rotating between the deposits and withdrawals made by the customers.
The price does not go high when people start buying more shares. It will only increase when more people start buying Bitcoin at higher prices. At a moment, if a lot of people just keep buying, then there will be fewer sellers. That can be because the price of Bitcoin has just come down. But that does not mean that there will not be any sellers in the future. When the prices start increasing, many people will sell Bitcoin to make profits. It is always similar to the normal trading process.
Money does not disappear:
For every buyer, there is a seller. For every Bitcoin that is bought, it is again sold back at a higher price. As the price keeps increasing, there will be more demand for Bitcoin in the market. That means more buyers and fewer sellers. But that does not mean that they will never sell Bitcoin. It is again sold at a higher price or whenever the investor wishes to withdraw the money. It is very simple logic.
So, when one person is taking some risk and investing in Bitcoin with their hard earn money, there will be another person who wants to spend their Bitcoin investments in another place. That is how the money is rotated and does not disappear anywhere or no is going to use your money. If you deposit your money now and want to withdraw it the next moment, then you will surely be able to withdraw it.
One need not have to worry about their investments in Bitcoin. It is always safe as they use much stronger security methods for keeping our deposits safe. The risks involved in bitcoin investments are something that makes you worry. But that is the case with any kind of investment or trading. As long as the price keeps going high, you will be able to make profits. This can happen only in a long run and you need to have some patience once you start investing in Bitcoin. If you are planning to invest in Bitcoin, then you can invest in it without worries about where your money is going.