When i buy bitcoin who gets the money

What makes bitcoins valuable? Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website. Gold is gold, silver is silver and food is food. The sellers get the money and usually a small part of it goes to the exchange itself.

What is happening?

But first, there are two things you should know about me: I tend to be almost as afraid of losing money investing as I am of flying. On some level, I figured one fear might cancel out the. So last Thursday, while waiting for a flight to Nashville, I pulled up a popular application called Coinbase that can be used to buy and sell bitcoin. News of bitcoin’s rapid rise was everywhere, including on CNN. Related: What is bitcoin? For 15 minutes at the airport, I refreshed the price of bitcoin over and over, watching as it gained and lost hundreds of dollars in a matter of minutes.

Why Invest in Bitcoin?

By using our site, you acknowledge that you have read and understand our Cookie Policy , Privacy Policy , and our Terms of Service. Do the funds paid in any world currency go into a pool to back the bitcoin or into the developers of bitcoin clients? What are the IRS requirements as to the value of ones account? The Norfed dollars where backed or made of precious metals and taken down by the federal coinage act. Thanks any info would be appreciated. All bitcoins are first issued to miners.

Some people kill time at the airport by browsing duty-free shops. I decided to shop for bitcoin.

By using our site, you acknowledge that you have read and understand our Tge PolicyPrivacy Policybitocin our Terms of Service. Do the funds paid in any world currency go into a pool to back the bitcoin or into the developers of bitcoin clients? What are the IRS requirements as to the value of ones account? The Norfed dollars where backed or made of precious metals and taken down by the federal coinage act.

Thanks any info would be appreciated. All bitcoins are first issued to miners. From there, miners use shen coins for trade or exchange. So when you buy a when i buy bitcoin who gets the money bitcoun cash, you are buying it from someone who owned it but initially it was obtained from a miner. If you are asking about trading on an exchange, then the getss software matches up buyers and sellers.

Since you are a buyer, it matches you up with someone that wants to sell or potentially several sellers that add up to what you want to buy. The sellers get the money and usually a small part of it goes to the exchange. Bitcoin is neither a commodity or a fiat currency, but has characters of. The value is derived from the scarcity since there will only ever be a finite amount of bitcoins, and before then there can wgen be so many at any given time, with no possibility of finding a new resource of.

The value is also derived from the liquidity perks that commodities bictoin currencies have failed to offer, especially person to person, and over the internet. If you bought a bitcoin with usd, the person you bought it from no longer has a bitcoin and would have usd instead. For the IRS you would most likely have to report your cost basis in US Dollars, and at reporting time report a gain or a loss if you sold them for cash.

Short-term capital gains are treated as normal income and taxed in whatever bracket you are in. Long-Term Capital gains are tne in a lower max different tax bracket.

Unless explicitly prohibited you can hold anything in an IRA or Roth account Home Questions Tags Users Unanswered. If I buy a bitcoin in USD who gets the cash?

Asked 6 years, 9 months ago. Active 1 year, 11 months ago. Viewed 14k times. Nicolai 1, 12 12 silver badges 14 14 bronze badges. And i don’t mean only in the USA i mean in more complicate economies, with hardcore money regulations, as Venezuela or Argentina? When you buy an ounce of silver bullion at the coin store, who gets the money? The person who held the coin before you did.

Stephen Moneu Stephen Gornick When I buy a gold or silver coin I have the coin with value, as silver and gold are needed to build computers and other things. I only see the bitcoin as another fiat currency? I still do not quite comprehend the miner aspect, what does a miner do to add value to the bitcoon The I. The overall concept sounds ok however a barter system would be value for value, I trade you some food you fix my roof.

What am I missing? Hi Stephen I can see this is a fraud as my first bu has been edited by you? Do the funds paid in any world currency go into a pool to back the bitcoin or into the developers of buuy pockets? Gold is gold, silver is silver and food is food. I still can not see where the value in bitcoins are? What happens if your computer is hacked?

RentFree RentFree 2, 1 1 gold badge 16 16 silver badges 33 33 bronze badges. Still the question has not been answered how was or is the bitcoin gete I have a real cool cat that I have trained to give me a high bitocin on command.

Are these hairs worth the same as gold, silver or bitcoins? When I when i buy bitcoin who gets the money a aho in my backyard and say goodbye to my beloved kitty are the hairs worth anything? There are liquidity crisis around the world and people are using bitcoins for liquidity instead of a reserve currency like gold and precious metals.

People find value in. Featured on Meta. Update: an agreement with Monica Cellio. Linked Related 5. Hot Network Questions. Bitcoin Stack Exchange works best with JavaScript enabled.

DON’T Buy Bitcoin on Cash App Until You Watch This

Some people kill time at the airport by browsing duty-free shops. I decided to shop for bitcoin.

It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy. A sound, global currency like Bitcoin will have the same impact on finance and the global economy. Square SQthe payments service, is also rolling out a bitcoin product. So, really: It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. It generates your Bitcoin private keys offline. SmartAsset Paid Partner. Bitcoins are scarce and useful.