If you go to the finance category here at Capricorn Science you’ll find that we studied the cryptocurrency subject and blockchain in depth. I’m still in the dark about the inner working of Blockchain, which was created, by the way, by Dr. Craig Wright, aka as Satoshi Nakamoto.
Cryptocurrency is a computer code which you can buy or sell. It not tangible, it has no financial backing nor is it collateralized by anything. Stablecoins are the only exception that I know of and they have been investigated for their “lack of financial transparency.”
My research style is to dissect, define, question, put the puzzle back together and define what I find. Cryptocurrency had me mind-boggled since I wondered if investors truly understood what they were investing in. Rule number one is follow the money, an expression I’ve learned to hate but acknowledge that it’s useful at times.
Following the investors money back to it’s place of origin opened my eyes to the fact that here comes Joe Blow. He creates a crypto name ChiChiBanana and issues a billion shares of software code for $1.00 per share. Promotes. Advertises. Dances around about the glories of ChiChiBanana and opens his computer for business. A total success. He sells all issues of software codes for a buck a piece. Investors purchase one billion computer codes for one billion dollars. They hold it, they trade it and do what investors often do in the middle of the night, pray on it.
Joe Blow, the creator and seller of the cryptocurrency ChiChiBanana is a very, very happy man. He has become an overnight billionaire with the sale of the one dollar billion computer codes. He gets to keep this money, free of any liability for damages, controls from the NSAD, banking and all the other constraints place upon investment companies and their many offspring’s.
In other words, if you buy Bitcoin or other cryptocurrency from an exchange like Zebpay or others your money goes to the exchange. However, if you buy it from a holder of bitcoins by transfer of bitcoins from his wallet to your wallet, your money goes to him as decided between both of you.
In other words, the money goes to the people that sell, some of them got their crypto through mining, airdrops or if they were the ones to start the currency – all depending in each particular case.
Learn more about finance terms at Investopedia