Bitcoin makes money when there seems to be scarcity of it (Demand & Supply) and there are people who are actively buying it this will cause the price to increase and the more people keep buying it the more the price keeps going higher, at this point those who bought it at very tender or when the prices seems not to be higher then can now start selling back. At this point you have made money from holding bitcoin but doesn't mean that once you buy bitcoin you began to make money instantly No it requires time and patient moreover it's highly volatile you have to be prepared to invest in bitcoin because if you invest your hand earn money and it happens that price goes against you then all your money is gone although that doesn't mean that you totally lost the money but it would come back when the bitcoin price tends to reach your entry points, your fraction doesn't reduce rather what reduces is your dollar equivalents.