Monday, January 13, 2025

math – Withdrawal earnings – Bitcoin Stack Change

The center of your misunderstanding is “withdraw earnings”.

After you have the fact clear in your head, the remainder is easy arithmetic, the kind of including, subtracting, multiplying and dividing you realized whenever you had been a small youngster.


Lets do some including, subtracting multiplying and dividing …

Holdings $ worth ₿ worth
$90k 90,000 1
₿0 0 0
Totals 90,000 1

I purchase a one bitcoin for 90k

Holdings $ worth ₿ worth
$0 0 0
₿1 90,000 1
Totals 90,000 1

it peaks at 94k

Holdings $ worth ₿ worth
$0 0 0
₿1 94,000 1
Totals 94,000 1

I withdraw the revenue of 4K.

If you “withdraw the revenue” what you might be doing is promoting a few of your Bitcoin for {dollars} on the present trade charge. After you’ve gotten bought a few of your Bitcoin you’ve gotten $4k however you now have lower than 1 Bitcoin!

If the trade charge is $94k = ₿1 then $4k = 4000 / 94000 = ₿0.042553191

To get the $4k you understand as “revenue” into your palms you must promote ₿0.042553191 of your Bitcoin.

Which means you now have ₿1 – ₿0.042553191 = ₿0.957446809

Holdings $ worth ₿ worth
$4,000 4,000 0.042553191
₿0.957446809 90,000 0.957446809
Totals 94,000 1

In actuality you additionally pay Bitcoin transaction charges to Bitcoin miners and doubtless pay conversion expenses to the foreign money trade. Most foreign money exchanges have “unfold” or distinction between their shopping for and promoting charges. Likely even have another charge. It has most likely been thus since individuals began making cash hundreds of years in the past. That is nothing new or particular.


if then it drops to 93k does that imply [confused stuff]

If the trade charge adjustments to ₿1 = $93k then

  1. your ₿0.957446809 is price 0.957446809 * 93000 = $89,042.55
  2. your $4k is price 4000 / 93000 = ₿0.043010753
Holdings $ worth ₿ worth
$4,000 4,000 0.043010753
₿0.957446809 89,042.55 0.957446809
Totals 93,042.55 1.000457562

Want some readability

All of the above is nothing to do with Bitcoin, the sums could be the identical should you had been had been shopping for and promoting diamonds or carrots. It’s nothing to do with complicated finance. There is no such thing as a extra to it than easy arithmetic.

“Withdrawing Revenue” is just not some deep mysterious magic. It simply means promoting a few of one thing you personal.

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