Who gets the money when you buy bitcoins? Is it the government, banks or private investors? The reality is that the money goes to those who hold onto the most valuable coins – the ones that are worth a lot of money at one time. But how do they get this money?
Well, for one thing, there are people who cashed in on the currency after it went through all of its crazy fluctuating prices over the last decade. These people have now turned around and sold their pieces of the deal and then sit back to wait for the value to go back up again. Of course, if the value goes down, they can dump the dollars and the sell the Bitcoins. It’s like gambling but with better odds. Those who have bought the Webmoney In Pakistan will end up getting the money rather than the government or other institutions.
This is basically how the government goes about keeping the money in circulation. They need it to pay the bills. However, the government doesn’t want to take it out of circulation. The private sector would benefit from it too. That’s why the government tends to leave the private investors to make the deals for them.
So who gets the money when you buy bitcoins? That depends on whom you ask. You could ask private investors. Some do, of course, and others don’t want to deal with the volatility and are holding on to the government issued notes.
Another group you may hear about when you buy bitcoins is the government itself. They sell the coins as a sort of funding mechanism for the government. Of course, they get their money, but there are some who act as the middle men. These folks will try to get the money from you by acting as the go between for you and the government. This can be tricky though. If they get the money wrong, it could be a real headache.
Then there are banks that issue notes. In fact, many of the largest banks in the world to issue these notes. You see, they have to buy the money at the market value so they figure if they issue more than they need, they can then lend it out.
A third option is to let the government buy the money for them. Of course, that would probably work out the best for them because it keeps them in the money business. Still, it’s not as easy as it sounds and they would still need to deal with investors. Who does that benefit? That’s another question.
It’s hard to answer the question who gets the money when you buy bitcoins. It’s better to ask instead if anyone does. It seems the government would prefer to handle it themselves. After all, it’s better to have the transaction processed by a private party then it is for the general public. Private parties often give better service as well.
One reason why governments would prefer to handle transactions like this is because they are interested in keeping the taxes down. They don’t want to make an impression on the public with a light sentence for criminal activities, but rather one where they take everyone’s hard earned money and use it for their own purposes. In many ways, that would be worse. It would send a message that the government doesn’t care about property rights, but only wants to collect taxes from everyone. This would go against the ideals of the government stands for. They would also be taking a chance with private companies that rely on customers to keep the lights on in their companies and operate successfully.
If the governments were to go through with this, it would be bad for business. That would also mean that their customers are no longer able to safely conduct transactions with the private sector. This could cause a contraction in private sector activity. That would hurt the economy. People would lose jobs and businesses that were doing well would fail. So, it is in the best interest of the government to keep transactions like this private by either limiting or totally eliminating them.
The other option that most people want to have when you buy bitcoins is not to have them done at all. It is called self-regulation. Self-regulation means you regulate yourself. There are many ways to do this. Some people even run their transactions through middlemen.
The governments don’t really want to get into this business of regulating private transactions. After all, it would be too big a risk for them. It would be much better if people dealt directly with each other based on a self-regulated network. You would be able to protect yourself from government intervention and you would be able to get exactly what you need from the market without worrying about government intervention. In fact, if you were in a situation where you could do this, you probably would because there are very few situations in which the government would ever interfere with a private transaction. They just don’t have the legal powers to do so.