Ive been thinking about this alot lately.

You know how if i buy shares of a company i own a piece of a company or if i buy a house i own the house. These things exist in the real world.

Bitcoin does not exist in the real world, it exists in the virtual realm. So how can something like bitcoin just shoot up in value simply because of supply and demand? If more people buy cars, the price of cars will cost more. The same thing is happening in bitcoin. How can that possibly be? How does the system know that millions of people are hoarding bitcoin, which then shoots up the price.

Plus, when I buy a bitcoin what is really happening? For example, you know if i buy a stock on robinhood i know its going to a market maker. But with bitcoin, what is happening behind the scenes when i buy a bitcoin?

submitted by /u/MedicalWash2486
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