Your transaction goes onto a publicly traded ledger that can be checked, crosschecked, and verified in the public domain.
If you transact with fiat money, it goes onto a privately traded ledger that only your banking institution can see and verify. This has become quite the problem with stock trades, as hedge funds have been caught fabricating fraudulent shares without public disclosure the ability for shareholders to verify the integrity of a given stock.
One day soon, the entire stock market will be tokenized and operate on a blockchain. Blockchain technology makes it impossible for synthetic fraudulent shares or tokens to be created.
I can sell you a bitcoin directly and that $20,000 would go to me. The transfer would be straight from my crypto wallet to your crypto wallet and you would need to send me the money via whatever means. Cash, or any other method of exchanging money between people and all applicable laws (reporting etc) would need to be followed as with any other transaction.
You can also buy from an exchange, think of them as a gold or silver dealer. You can exchange cash with them and purchase bitcoin. They have wallets just like me that have crypto. They are businesses. As with any business, they should be legit, there are US based crypto currency exchanges and like you and me, they buy crypto, have it in their wallets and can sell them to you and me.
Has the cash in your wallet ever been used in a drug deal?
Has the crypto in my crypto wallet ever been used in a drug deal?
You are at infant levels of knowledge in what and how cryptocurreny works and it is embarrassing for you. Spend 10 minutes on youtube and learn about what it is and how it works instead of repeating MSM talking about about how crypto funds criminals. Crypto is nothing more than a digital vehicle for making money transfers and just like a spoon that moves food from a plate to your mouth can also be grinded down to shank someone and kill them, its not the spoon its how you choose to use it that matters. Dont make something neutral become evil, its the actions of people that are evil, not the implement.
So where does that bitcoin/ crypto come from? Why is it worth $20,000? If its not backed by anything besides the fiat going into it then it would crash like anything else.
So tell me. I buy $20,000 worth of crypto. Where do my dollars go?
Your transaction goes onto a publicly traded ledger that can be checked, crosschecked, and verified in the public domain.
If you transact with fiat money, it goes onto a privately traded ledger that only your banking institution can see and verify. This has become quite the problem with stock trades, as hedge funds have been caught fabricating fraudulent shares without public disclosure the ability for shareholders to verify the integrity of a given stock.
One day soon, the entire stock market will be tokenized and operate on a blockchain. Blockchain technology makes it impossible for synthetic fraudulent shares or tokens to be created.
How so?
I can sell you a bitcoin directly and that $20,000 would go to me. The transfer would be straight from my crypto wallet to your crypto wallet and you would need to send me the money via whatever means. Cash, or any other method of exchanging money between people and all applicable laws (reporting etc) would need to be followed as with any other transaction.
You can also buy from an exchange, think of them as a gold or silver dealer. You can exchange cash with them and purchase bitcoin. They have wallets just like me that have crypto. They are businesses. As with any business, they should be legit, there are US based crypto currency exchanges and like you and me, they buy crypto, have it in their wallets and can sell them to you and me.
Has the cash in your wallet ever been used in a drug deal? Has the crypto in my crypto wallet ever been used in a drug deal?
You are at infant levels of knowledge in what and how cryptocurreny works and it is embarrassing for you. Spend 10 minutes on youtube and learn about what it is and how it works instead of repeating MSM talking about about how crypto funds criminals. Crypto is nothing more than a digital vehicle for making money transfers and just like a spoon that moves food from a plate to your mouth can also be grinded down to shank someone and kill them, its not the spoon its how you choose to use it that matters. Dont make something neutral become evil, its the actions of people that are evil, not the implement.
So where does that bitcoin/ crypto come from? Why is it worth $20,000? If its not backed by anything besides the fiat going into it then it would crash like anything else.