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RE: CHART ART: BITCOIN BREAKS OUT THROUGH $3,000 TO REACH NEW ALL TIME HIGHS!
I don't understand how The value of bitcoins continues to rise so high when all of these new crypto currency's are coming to light. What makes big queen more valuable then say lite coin or any of the other ones? And is it possible that any one of these new crypto currency's could take off and bit coin could lose all value? Where is the money that is paid for bitcoin kept? Sorry I'm a total noob and these are just some of my questions.
It's been around the longest, has the most infrastructure built for it, a first mover advantage, and a strong network effect.
Exchanges don't sell bitcoins. They provide a platform where traders who have bitcoin can offer it for sale, and traders who have fiat currency can place bids. Any time the two meet, a trade happens. Exchanges hold balances in various currencies (fiat and crypto) for their customers, which customers can withdraw. There are also OTC markets like localbitcoins and Bisq, where coins are escrowed but fiat currency changes hands without an intermediary - either in person or via cash deposit to a bank account.
Thanks for this ashaman. Great explanation.