Bitcoin Forum

If the A invests $1000 in bitcoin, then the next day the price of bitcoin drops dramatically and the A loses $1000, which makes me curious, where does the $1000 A money go?

the price has to zero for A to lose his money which is not going to happen!

generally speaking the money doesn't go anywhere. you converted your money to something that lost value. if you have trouble understanding how it works then imagine something more common like a new car that you buy and then have an accident with and its price drops, or when you buy shares of some company at $10 a piece and that company doesn't perform well and the share price drops to $9, your investment doesn't go anywhere it just would have a little less value. or the same way, if the price of it goes to $11 you didn't create money from thin air, that item you held is now worth more.
so when you sell it to someone else on the market in first case you lose a little money and in second case you make a profit.

Nowhere, you just transfer your money into bitcoin and if you sell it with lower price you lost your money, it is just up on you if you will wait or take lower amount after some time.

I am curious about the investments and I am curious about the tokens I have invested in getting to other trading floors no more I like discovering new ico programs on the market

If you want to invest you must be able to predict prices, you should wait for the right time to sell them, so you can make a profit.

There is always a game in the market. If someone loses money, someone will make profits. If someone loses $1,000, the person who sells the coin when he buys it gets the $1,000.

That $ 1000 just got liquidated in the market and to fulfil the dropped market cap it gets distributed over it. Most of the time bitcoin drops in value when people are selling out heavily. When they sell the money gets into their wallet. That is they are converting their bitcoin to fiat and in the process they are taking out the investments and growing the supply and reducing the demand of bitcoin. Thus it looses the market cap and value in the process. Now how much from $ 1000 will loose is dependent upon how much value bitcoin reduced.

The bitcoin ecosystem is complex and homogeneous which if the price drop I think it stays in the system with a zero sum game.

with your confusion like this then you must really learn the system first, actually you don't lose a bit with the number of items you buy, the number of items remains at the value you buy.

if you buy btc with a capital of $ 1000 and you get around 0.1 btc then that amount stays in place as long as you don't sell it again, you just wait for the selling price that is higher than the price you bought

he doesn't lose $ 1000, but he only loses the value, this is bitcoin volatility, and that's normal. his assets will be stored safely in a bitcoin wallet.

we will take advantage when the bitcoin market is high again.

if you invest in bitcoin with the amount of $ 1000 and then the price of Bitcoin drops $ 1000 of course if you sell it then you will not get anything including the profit that is only a big loss, the more you wait for the bitcoin price to exceed the price you invest then what you get is profit is not a loss.

Let my clear something here, Mr A investor did not loss his $1000 dollars investment there only a deep in price value which is for some period of time. The investor has to be educated about the  value movement of this currency before investing.

When A buys bitcoin for $1,000 he or she is actually paying B, When the price drops the money goes to B, If B keeps the money and not transferring it to another person then the money is with B.

Bitcoin investment is like any other form of economic investment. If you make a profit of $ 1000 and someone is losing $ 1000. If you lose $ 1000, then someone will make a profit. There is always a balance in the economy. You lose money, and someone will make a profit and vice versa.

Wow!! Just wow!!!

The 1000$ have gone to the person who sold A the coins.
No matter if the price goes up or down, those 1000$ are there, in the pocket of person B.

Think of it like buying anything else a house, a car, an ice cream.
If you buy a 2$ icecream and you eat the 2$ have vaporized?
If you crash the car, if your neighborhood light up your attic, it's the same...

Losing 100% value of btc investment in a day its kinda impossible, though trading always dictate the market, whenever there is a demand the price will automatically go higher , whenever there is a sell out then the price will be lower .

There's no need to get curious about it, Your money isn't lost you only had a portion of bitcoin or converted your fiat money to bitcoin, But the value decreases so you think that your money had also decreases, But you still had it as a portion of bitcoin, The good thing is you will just need to wait for the price to roll back and increase again and the price might increase as not the way you had expected and it will also gain profit with it when you do, You are investing in cryptocurrency expect the worst and expect the risk and gains in the world of cryptocurrency.

the money he has goes with the bearish market, and goes with the correction market.

I'm sure he never sleep well, he will always think about the capital he has and goes with a bearish market.

so, in my opinion it's better to wait until the market is normal again.

That is how everything works here so, apart change in the real life changes is normal aswell in the marketplace where the charts got red and green.
Now. Where does it go ? In your wallet
It just stays there it never been stolen just been deducted or increases due to corrections in the process of the investors movements and idea which they trade, sell, hold and buy.

You already said th $1000 is an investment. so it is governed by principle of markets.
News made the phrases  like "lost billion dollars" to make you believe that really a worth of billion dollars wasted?

It is never real Dollars. It is the potential that you lost.

For ex. I have a house that I sell it now for $1000 but after one month if I am getting offers for $800 only , so according to investor /News I will lose $200 but in reality I just lose the only potential $200 but no actual loss.

HAHA I love this question, it's like primary school all over again :D
I know you shouldn't answer a question with a question, but let this be a riddle for you that will hopefully make you not only get the answer, but understand.

If you buy a used car for $1000 and try to sell it 2 years later with a higher mileage, will it be worth $1000? Probably not.
Now, if you put it on auction for $800, where does the $200 go?
I know that exchange may be looking suspicious to you, because it's not trading physical items, but the principle is the same.

Considering the board we're on, I'm going to go ahead and skip the condescension. The answer to this question is tied to one simple economic aspect: market value (https://www.investopedia.com/terms/m/marketvalue.asp).

If you bought Bitcoin for $1000, from something/someone, they get your $1000 in fiat, and you get an asset that is worth $1000 in the market. You're not holding $1000, but something that can be sold in the market for $1000. If Bitcoin's market value drops to $0, you still have exactly what it is you paid for, except it's worth less in the market. Your $1000 didn't evaporate into thin air and is staying with the original seller.

It's the same principle if your Bitcoin appreciates. Let's say Bitcoin prices rise to $1200 the next day. You didn't magically gain $200 from nowhere, the asset you're holding (again, your Bitcoin) can simply be sold for $200 more because its market value increased.

What you may be asking is how exactly market value changes. The answer would be different for different assets (for the car example from other posters, you have to consider wear, tear, etc.), but for Bitcoin specifically, the answer mostly lies in the concept of supply and demand. Here is an easy read (https://www.luno.com/blog/en/post/how-bitcoin-price-determined) on the topic.

The same principles apply to non cryptocurrency investments. In the past, you might buy shares which were worth $10 each. If they got devalued and returned you only $7, it doesn't mean that your money has gone anywhere. Maybe you could say that the amount has shrunk.  If you buy Bitcoin and it decreases in value, it's the same thing. Your Bitcoin may have cost you $10,000.  With the fluctuating market, the value could shrink to several thousand less. At the same time, It could also increase by several thousand. That's the game. Whether it' stocks and shares or cryptocurrencies, the principles are the same.

If you invest in Bitcoin and have a low bitcoin rate, and at that time if you sell your bitcoin then you will surely face the loss. Wait until you get the price and then there will be no possibility of your loss.

To be honest, it is a theoretical case and it won't happen at all because if the person is losing his entire money then it will be a 100% overnight loss which is not possible at least for now in most of the major cryptocurrencies out there. But if the investment is falling to $900 from $1K then the loss of $100 is the profit of someone who bought Bitcoins at $800 and sold it for $900. In the case of a 100% loss, every investor will lose money.

Every single time when the price of Bitcoin drops and we lose a portion of our investments, they go straight to satoshi's wallet, and he uses them to travel the world and have fun.  :P And every time the price grows, he takes loans to pay the profits that people have earned from their investments. It is a very complex thing, don't even ask!

Drop of bitcoin price is very common in crypto market but again A can reclaim it when the price will raise. But he didn't entirely lose $1000. A just lost the price value.

The money does not go anywhere. It just loses its value. It's like the entire appreciation and depreciation of currency.

Your 1000$ goes to the guy who sold you a Bitcoin worth 1000$ before it dropped to zero. He got youe money, you got the air.)

This curiosity is completely fine. But the money does not go anywhere. It just fluctuates in terms of its value. It either improves or worsens.

A' will not lose all his money as the value of Bitcoin can come as close to 1$ but never equal to zero. So, he can either decide to sell his coin and accept the loss he has made due to the value getting lowered or he can wait till the value increases over time and sell it for a good amount of profit. It's like an investment, you are paying for the perceived value.

The way you are calculating is wrong. Take the example of share market, you buy a company's share which is priced at 500$. After one month the company starts to have bad reputation and due to that the value of their share decreases in the market and gets priced at 50$. So, now you can decide to sell it at a 450$ loss or you can keep holding it till it increases again given that the company can overcome that situation.

In this situation if you invest in bitcoin 1000$ and lost all $, it can mean one thing - bitcoin = 0$ )
Most you have suffered losses, but the funds must remain... Or you play in casino)

There is a zero possibility of losing all your money. At least there will be some value left which 'A' can get back by selling the Bitcoin he owns. The way you are representing the case is wrong because it is not about losing the money rather here, the Bitcoin loses it's value and after being valued at a less price 'A' has to sell it and make a loss out of it.

That $ 1000 just got exchanged in the market and to satisfy the dropped market cap it gets dispersed over it. More often than not bitcoin drops in esteem when individuals are offering out vigorously. When they offer the cash gets into their wallet. That is they are changing over their bitcoin to fiat.

There's no compelling reason to get inquisitive about it, Your cash isn't lost you just had a bit of bitcoin or changed over your fiat cash to bitcoin. The good thing is you simply need to sit tight at the cost to move back and increment again to pick up the benefit with it.

Someone wants to sell bitcoin at $1000, you give $1000 and get one bitcoin, after one day someone wants to buy bitcoin at $500 and you give your bitcoin to him and he gives you $500, now you have $500.

At first, you should truly take in the framework. Purchasing BTC with a capital of $ 1000 and you get around 0.1 BTC then that sum remains set up as long as you don't offer it once more, you simply sit tight at the offering cost that is higher than the value you purchased.

Actually it doesn't go anywhere. Investing in bitcoin means you have spent your money and converted your money into bitcoin. Now if the bitcoin price becomes lower, it means the converted money has less value. Now, it is your decision that if you will wait for the price to go higher or you will sell your coins at a low price now.

Compare this situation with buying something with your money. Suppose, you have bought something with your money, but this thing has lost interest among people, so, nobody wants to buy it from you. The thing you bought is still with you but you can't sell it with a good price. In case of bitcoin it is almost the same. But if you wait for a time, you can sell bitcoins at a higher price when the price goes higher.

The bitcoins you bought never goes anywhere if there is a loss. The bitcoins stays right there but the price changes. The bitcoin amount remains the same but the price becomes lower. In this case it is better to wait for the price to rise. There is no need to panic.

When you buy a car from a person the person will get the money. Similarly when you have a lose someone will have the profit. The money goes to the seller as far as i understand.

The bitcoin is converted into fiat currency. You have given 1000 USD to the person who has sold the bitcoin in the market. So basically the money is transferred to people to people.

Basically bitcoin is reaching null value which is quite impossible. Mainly the money floats in the market and transferred into the account of seller. When you sell your coin you will get the money from the market.

Actually money doesn’t disappear. It remains to the person that you gave in return of a Bitcoin. You actually lose the value of the thing you bought which may recover in future

A very interesting question! I am also curious to know the answer. I don’t really understand where money goes and how the chain works. I hope anyone gives a good answer

actually, the money doesn't go anywhere. it stays in the system. its just that, during the time that you invest. the price of btc is higher than the price of the btc that you are seeing the next day. it losses value but it doesn't mean the movement is always like that. if more investor will be interested on btc, the value of the btc will also rise. remember, the higher the demand, the higher the product value become. as long as you dont sell your btc when the market price is lower, you are not losing. moreover, if you sell it when the market is high, you will get a decent profit.

Of course, it is absorbed by the seller. As the seller continues to sell coins at a low price, this will cause the price of the coins you buy to fall rapidly!

When you pay a price for a Bitcoin it becomes the value of it. So it’s not that the value vanishes. It fluctuates but can be recovered in future. The person who sells the BTC keeps the money

The money didn’t go anywhere but the BTC that has been bought just lost its value. Value of something is always dependent on the demand. If BTC is not demanded at all then its value will be zero.

well to be honest a curious investor can definitely achieve success in this field cause his curiosity will help him to understand the market more clearly , this kinds of attitude is important for developing a better market

i think it's do not go anywhere because You can transfer your money here in bitcoin. And if you sell Bitcoin at a lower price then it will make lose for you. if You wait a little bit time price will be increase you will be able to sell it. it will make your profit.

Do not go anywhere. You can transfer money here in bitcoin. And if you sell Bitcoin at a lower price then you'll be losing. You have to wait, when the price increases, you will be able to sell it. it will make your profit.

Money will not go anywhere. Here you can just convert money. If you sell at a lower price then you will be facing losses. But you have to wait if you want to profit. its future are very good.

I am inquisitive about this type of investments. I also curious about the tokens I have participated in getting to other trading floors. I always like to invest new ICO proggarm.

i don't think it is possible to invest in bitcoin and lose everything. this situation you may not face in your life.

If you invest your amount in Bitcoin and sell it at a lower price, then your loss you amount. But wait and see when the price of Bitcoin is high in the market. If you sell at that time then you will be definitely benefited.

This just prove to me that there are some here that jumped into crypto market without the basic knowledge. So just what if you really loss that amount and surely you gonna spam the forum while cursing bitcoin.

Basically, your $1000 didn't loss as the value had just decrease and obviously, you'll just loss when you sell under the price you bought. And as the volatility is concern, it will bounce back into its initial price and somehow will pass beyond your capital. Your $1000 didn't go anywhere and it's just be there as long as hold it.

Crypto investment is riskier from what you think and if you didn't know how to deal with volatility, then it's game over.

A will lose the Bitcoin number, maybe so. But that bitcoin will exist in the cryptocurrency space and wait for the next exchange.

I became much curious in cryptocurrency when a friend of mine bought a car within 3 months of being in crypto.

What has changed is the value of the cryptocurrency (bitcoin) invested in, the money invested increases or decreases in line with the current value of the cryptocurrency. If the value of the cryptocurrency increases by 100%, your investment will equally increase at same rate and vise versa. The money goes nowhere.

It can be tricky thinking your money disappear but actually  it goes nowhere. What is at play is the change in price/value of bitcoin which determines the value of what you bought. As the price changes, your investment also responds in the direction of the bitcoin price.

I think you asked your question with an inappropriate example.

Let me clear your question with a right example:-

If A invested in bitcoin at price of $1000 that means someone sold his/her bitcoin to person A, cause you can only buy bitcoin or cryptocurrency when someone else sell his/her bitcoin or cryptocurrency.
Money doesn't go any where its just keep moving from one hand to another.
If you buy a piece of bitcoin at $100 and you sell that bitcoin at $1000 that means you profited $900, and that $900 comes from that person who buy your bitcoin at $1000.

The simple trading is totally depends on demand and supply if demand increase then price will go high and if demand decrease then price will go down.

I don't know if this is entirely true. Image I buy all the bitcoins there is. All the market cap of the bitcoin is then distributed to everyone who had bitcoins before. When the bitcoin price drops, my money is lost, and I am poor, but the money doesn't just disappear, the people who sold it to me profited. So the actual currency that is inserted in the crypto market has to go to someone else.

Think back, if A invested $ 1000 in bitcoin, the next day the bitcoin price increased and A got $ 2000. Ok, you probably already understand.