Where does the money go from bitcoin atm

It’s incredibly important to double or triple-check that your wallet address is correct when buying Bitcoin and other coins. Ars Technica. Learn how your comment data is processed.

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Wjere using our site, you acknowledge that you have read and understand our Cookie PolicyPrivacy Policyand our Terms of Service. This question seems to me to be such an obvious question, that it must be answered. As I understand it is necessary to buy bitcoins using dollars or some other currency. Where do those dollars. The money goes to the party that sold it to you — that party owned the bottle before you owned it. You might be able to trace ownership of that bottle all the way back through the supply chain, to dos point at which it was manufactured. It probably had several prior owners before you got it.

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If you have a Yandex. Money card, you can withdraw cash at any ATM. You do not need to do anything in advance: simply insert your card, enter PIN, and collect the money. This card is supplementary to your Wallet. They share common balance. If you add money to your Wallet, you can spend this money from the card.

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This question seems to me to be such an obvious question, that it must be answered. As I understand it is necessary to buy bitcoins using dollars or some other currency. Monsy do those dollars. The money goes to the party that sold it to you — that party owned the bottle before you owned it. You might be able to trace ownership of that bottle all the tam back through the supply chain, to the point at which it was manufactured.

It probably had several prior owners before you got it. If you purchase from a market exchange like Mt. Goxhere’s how that works. Gox, like most market exchanges, operates using deposit accounts.

To sell 10 bitcoins you must have deposited frmo BTC to your account with the exchange. Then when you withdraw your BTCs, the exchange will send that amount of bitcoins from the exchange’s wallet to yours. When the seller withdraws the USDs or whatever currency the coins were sold forthe exchange will send those funds.

This generally occurs through the banking system, with the funds eventually arriving in the seller’s bank account.

There are other types of bitcoin sellers — direct sellers, who have an inventory of bitcoins that they purchased previously, or will make a trade behind the scenes to be able to deliver your order. So the dollars from your purchase goes to them in exchange for the bitcoins they owned.

Then there are other types of trades which involve risk. These include financial derivatives where you may speculate on bitcoins using cash but until you actually withdraw those bitcoins to your own wallet, you only own a claim against those bitcoins or against a financial position on bitcoins. But that is an example where there is not a simple buying and selling of bitcions at a certain price.

Now every bitcoin in existence originated from mining. Mined coins arrive 50 at a time about once every ten minutes. They are earned by a mining operator or mining pool and distributed to the mining operators who were mining. To mine, one must buy expensive hardware, expend the effort to build and operate the equipment, and purchase the electricity expended during mining.

The mining operators can then deposit their bitcoin proceeds to an exchange to sell them and receive cash in exchange. It’s like when you buy anything. When you trade your dollars for somebody else’s eggs, you get the other person’s eggs, and they get your dollars. You can then sell the eggs to somebody else if you like — then you get their dollars, and they get your eggs. If you are able to sell your eggs for more than you paid for them, you make a profit. Instead of buying eggs, it is possible to mine them using a device commonly known as a ‘hen’.

Hens ffom eggs out of thin air, and are effectively a license to print money since the eggs they make can be traded for dollars. They do require fuel to run, which costs money. Miners need to where does the money go from bitcoin atm whether their earnings from mining eggs is enough to offset the fuel costs. Unlike eggs, however, there is a fixed limit of 21 million bitcoins that will ever frim created, which makes them relatively scarce, and helps give them value.

Home Questions Tags Users Unanswered. Where do the dollars go? Ask Question. Asked 7 years, 4 months ago. Active 2 years, 6 months ago. Viewed 40k times. When you buy a bottle of soda at the convenience store, where does wher money go? Bitcoins are like a commodity that works the same way. Stephen Gornick Stephen Gornick So in the case of an exchange like Coinbase, do they hold a «pool» of Bitcoin that they hold and sell to people? Chris Moore Chris Moore 14k 5 bitcooin gold badges 56 56 silver badges 81 81 bronze badges.

Heh, this is a great way of explaining it! Chris How does this work in the case of exchanges like Coinbase? Directly to people who are currently selling if you don’t count the minor exchange fees.

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On October 29,a Robocoin machine opened in the Waves coffee shop in downtown Vancouver, Canada. Freelance Contributor. Share Pin Email. After your receipt is scanned, it should then give you your money. Bitcoin cash kiosks look like traditional ATMs, but do not connect to a bank account and instead connect the user directly to a Bitcoin exchange. Copy Link. Bitcoin Last Updated : November 6, Sharing is caring Shares. If you send the cryptocoins to the wrong address, there’s no way to get them. Leave a Comment Cancel Reply Your email address will not be published. Let Me in. Save my name, email, and website in this browser for the next time I comment. To combat such limitations, there are some special types of Bitcoin ATMs which you can use to sell your Bitcoins sitting in a remote location and then can withdraw cash upon completion of the transaction from an ATM that is near you. Bitcoin Core. Book Category Commons. August In other where does the money go from bitcoin atm Wikimedia Commons.