General Question

mazingerz88's avatar

If you own one million in crypto-currency, could you change it into one million in dollar currency?

Asked by mazingerz88 (27710points) 3 weeks ago from iPhone

As in dollar bills?

Observing members: 0 Composing members: 0

13 Answers

janbb's avatar

I don’t think it is mutable otherwise all these hotshots wouldn’t be losing millions when it tanks. But I don’t claim to fully understand it.

ragingloli's avatar

You would need someone to buy it off of you.
The entire crypto bubble is a “Greater-Fool” ponzi scheme, that relies on someone dumber coming along that will buy your crypto at inflated prices, who has the hope of doing the same to someone else down the line. Repeat ad infinitum.

mazingerz88's avatar

Creepy currency!

filmfann's avatar

You would have to find an idiot to buy them.
Don’t worry, someone trying to do the same thing found you.

gorillapaws's avatar

Absolutely.

Tropical_Willie's avatar

Not if you had FTX Crypto , 600 million dollars total disappeared Friday the 11th, many accounts went to ZERO !

zenvelo's avatar

A million what? Bitcoin? Satoshi? FTT? Ethereum?

Each crypto has a different value dependent on whatever someone will pay of them at a given moment.

A million bitcoin is worth $16.855 billion as I write this, but that is $5 billion less than at the start of the week!

1 million satoshi = 1/10th of a bitcoin, so worth $1,685.50.

Love_my_doggie's avatar

Cryptocurrencies aren’t legal tender or fiat currency. A share of a cryptocurrency is a capital asset, with no legislated or intrinsic value; it’s worth what people are willing to pay in a market.

If you want cash for your cryptocurrency holdings, you’ll need to sell them. You might realize considerably more than your cost basis, or you may have a loss. For income tax purposes, you recognize a capital gain(loss) and report on Form 1040, Schedule D. Guessing from the tone of your question, you’ll likely need some competent, professional tax guidance to help you.

jellyjellyjelly's avatar

Yes, it’s just like converting dollars to euro or yen. Rarely a 1:1 correspondence between dollars and other currencies, but you can convert easily between them.

Smashley's avatar

It’s hilarious to me how so many crypto overnight millionaires were so against capital gains taxes that they just diversified cryptos and hodled, until it all started coming unglued.

Yes, you can sell them for fiat currency, but the “value” you see reported is only a benchmark. Your crypto is worth exactly what someone is willing to pay for it.

ragingloli's avatar

This video should be a required watch.

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