How do Bitcoins really circulate into users?

[amacar2]

Does it circulate like a real money that circulate as a tax.

Bitcoin circulate like digital money not like real paper cash and also bitcoin are not subject to tax or it is very hard to impose tax on bitcoin transactions.

However some countries already have started taking tax on bitcoin trading in local exchanger and also they are trying to add more regulation on bitcoin trading platforms so that they can collect more tax.

[davis196]

Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate into users? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?

Thank you.

What do you mean by "real money that circulate as a tax"?

You can buy goods and services with bitcoins,you can use btc for gambling.It`s like real money.

Why  are you asking this question?

[FlightyPouch]

Well,BTC is limited unlike cash,which can be printed and there is no limit there and because of this fact BTC doesn't circulate that much,however the idea is the same-people paying with BTC,then someone selling BTC to another person and so on.It's really that simple,there is nothing new compared to cash and the concept is absolutely the same really.That's what makes BTC relatable.

but how about making them? As far as I know. Real money is made by paying real money too. Is bitcoin the same that, new bitcoins are released by bitcoins too? Or maybe some of the are converted from real money to Bitcoins? From trading maybe??

[FlightyPouch]

Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate into users? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?

Thank you.

What do you mean by "real money that circulate as a tax"?

You can buy goods and services with bitcoins,you can use btc for gambling.It`s like real money.

Why  are you asking this question?

im sorry that my question is so confusing. But my real question here is how do bitcoins regulate to users, what happens from the bitcoins that spent and bought.

[DimensionZ]

Bitcoin doesn't circulate like fiat money does. It only changes hands and stops right there. People who have received Bitcoins are not going to spend the same Bitcoins. They are going to exchange the coins for fiat. And that's it - the cycle is done and the next cycle will begin. Bitcoin is not mainstream money, it's digital tokens.

With bitcoin only seven years old, what do you expect?

If nothing changes it will be the same in 50 years from now. What do you expect to happen to Bitcoin in the future? Bitcoin could be dead in 10 years or 20 years. There is a sub-forum about Speculation and you could propose your futuristic theories there but at the present time Bitcoin is not mainstream money.

[dothebeats]

I have a feeling that bitcoins doesn't really circulate in the economy. Most of the time, bitcoin is being kept by hoarders expecting for a price increase. Because of that, only a fraction of the available coins are in circulation; ret are kept on cold storages.

[Creepings]

I have a feeling that bitcoins doesn't really circulate in the economy. Most of the time, bitcoin is being kept by hoarders expecting for a price increase. Because of that, only a fraction of the available coins are in circulation; ret are kept on cold storages.

That explains why some of the users here is pissed everytime the bitcoins price are changed. I was introduced to thos forum so I can make some money to help me from my studies, financially. Maybe I need saome time to get my rank high, and to earn some money.

[n0ne]

Bitcoin is same as the traditional currency, only the form varies. Bitcoin cannot be used physical which is the cause for decreased circulation. The circulation means the direct usage for our regular needs as well for transaction needs.

[Shiroslullaby]

I have a feeling that bitcoins doesn't really circulate in the economy. Most of the time, bitcoin is being kept by hoarders expecting for a price increase. Because of that, only a fraction of the available coins are in circulation; ret are kept on cold storages.

I don't know if there is any way to get this kind of information, but I would be willing to bet a lot of coins haven't moved wallets in a long time.
(Maybe you can get stats about the total available bitcoins, versus the amount of transactions per day and average transaction amount and get a rough estimate.)
Most Bitcoin owners are just sitting with coins either in wallets or on some kind of exchange.

If we want to create more users and increase the price of BTC, this will have to change.
Bitcoin needs to actually be used to purchase goods, transferred back and forth between people, if we want it to expand and become more popular.

[lionheart78]

I think bitcoin circulate in one country through the users that are base in that country.  Like for example, bitcoin was mined by miner from A country, this miner then sell their bitcoin to exchanges.  Then a buyer from B country buy bitcoin and withdraw it to some exchange to trade or buy altcoin, or withdraw it to use to buy in some local online market.  Then with this, there is a change in the hand of bitcoin that is within B country.  Then the owner of the online store will then convert it to fiat currency where the bitcoin can be bought by either A, B or C country.  IF C Country bought it, then it exits the bitcoin circulation of  B country.

[BingoDog]

Bitcoin is borderless, it's not limited to only one country or few countries and that is one of its best advantages. It's not printed phisical, paper money, it's not depending on any bank so it has no limits in circulating, it's going around through the virtual world and it's available to everyone.

[20kevin20]

Bitcoins do not circulate through governments or something similar. They do not work like real money, you got freedom here. They can be sent from a person to another without the government's knowledge, without anybody else knowing about it. You're being your own bank. Except transaction fees, there are no taxes.

[Taki]

Bitcoin circulate between users as any other currencies. Sending, selling,  buying, paying taxes and ect. Nothing special, just all operations are provided through the internet and without papers. I think bitcoin is our future and soon such thing as bitcoin will be normal not just to a little percent of people as today, but everybody will use it.

[Soros Shorts]

Also, many merchants accept it but don't actually care about its future, the cash it immediately and dump it on the market, those imposters can be recognized by their links to coinbase or xapo.

Well merchants dumping coins on coinbase or xapo is part of the flow or circulation. While this lowers the price it makes coins available for other people to buy from these exchanges. You can't really expect businesses, whose core competency is not virtual currency speculation, to hold their operating capital in an asset that fluctuates wildly. That is taking on added risk. In the extreme case, the fact that they could profit greatly if Bitcoin goes up does not negate the fact that they could also get wiped out if Bitcoin goes down. I wouldn't call these businesses imposters.

[jacafbiz]

Bitcoin is a boarderless currency. It is generated/mined buy miner and the market sell their coin to the market and let demand and supply control the movement just the way Gold works the only difference is that Gold can be mined from several places where it is found.

[buwaytress]

Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate one country? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?

Thank you.

Bitcoin would circulate like anything else would, presumably. Someone who has it distributes it to others via paying for goods, services, etc. That is then taken by the people who earn it and distributed to others through purchases, and so on and so forth.

Technically Bitcoin is a more global and easily distributed currency, so it can take a while for it to circulate in a local area, in its current state.

Technically is the operative word here. Unfortunately, cryptocurrency isn't centralised so it did not circulate the way fiat normally does at inception.

Once a fiat currency starts inception, the regulating govt through central banks distribute it. Examples to banks to circulate our wages, merchants to use for trade.

Minting is also centralised so all new fiat is created centrally.

Issue now with bitcoin is the ones with tech to create it are hoarding. And only selling to those who eventually circulate.

[ardentvolcanoes]

Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate into users? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?

Thank you.

I think yes, in my own opinion bitcoin circulates like a real money does and taxes are represented by transaction fee but the difference is that the government does not imposed a tax to any user for owning a bitcoin and bitcoin is not the same as fiat which is only printed on a paper and is only circulated in only one country.

[ged00u]

First of all, bitcoin is not regulated by any government or controlled by anyone, so it's no need for taxes. Try to think of this, if you had to pay tax for bitcoin, where would the tax go? Have you ever wondered where on earth those fees go  So I think that bitcoin doesn't have tax and I hope it won't have to.

[Zadicar]

Bitcoin circulate between users as any other currencies. Sending, selling,  buying, paying taxes and ect. Nothing special, just all operations are provided through the internet and without papers. I think bitcoin is our future and soon such thing as bitcoin will be normal not just to a little percent of people as today, but everybody will use it.

I don't think that taxes are already available with bitcoins as there is no country that is taxing bitcoins. I can see the possible taxation will happen soon with US and coinbase will be the first to implement with that law. Also another way to circulate bitcoins is with the transaction fees that we are paying when we are sending bitcoins to other users.

Yes its not possible for bitcoin to be taxed by government but im quiet shocked regarding on that news which US government would impose tax especially to those who uses coinbase.I dont know on how they would implement it because we know bitcoin cant be taxed and for sure no users will use coinbase because of tax actually there are lots wallet to choose from i think it would be useless. Regarding on the circulation,its not the same on fiat.

[calkob]

Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate into users? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?

Thank you.

I dont really understand your question fully but i think you are asking how to get bitcoins?  Bitcoins are either purchased from others at exchanges or you can earn them like any other currency by performing a task or carrying out work related tasks.