Quote from: Kprawn on November 10, 2019, 09:27:41 AM

Bitcoin investments are not measured in Fiat currency, like other investments. It is settled in a physical asset, so you get the amount of bitcoins

that you bought and not the amount of money that you invested. This will only work, if the investors would agree to claim their fiat investment

amount and not the actual value of the bitcoins that they bought. Who would do this, because other investments gives you the actual value of the

coins you bought. So you will get less fiat, if the price goes to the Moon. Roll Eyes

Do I understand the concept correctly? Huh

If the price goes to the Moon, even better for the network, that means more capital, let's take the example above. Let's say we put $500k worth bitcoin in the network, and tomorrow bitcoin goes to the moon and suddenly our network goes from $500k to $1 million, your piece of the pie will still be the same. But our goal of the network is just collect more capital and have big reserves, (reserves that are used when the market goes down, and buying up good positions) to reach the point of self-sustainability.

Let's say you want to leave the network and you want your bitcoins back, ok then instead of $1 million (worth of btc) the network would have $999950 w/btc, now because there is now one place open for someone extern to join the network and take your place in the network, he pays those $25 w/btc and now the network has $999975 w/btc. I have a complete theory that I wrote about this, it is called Circle of wealth creation.

Basically, our network assumes that more people will chip-in, then chip-out, so there will always be enough money in the pool to pay your amount in BTC back.