A cheaper price feels like a deal. Here is what Bitcoin actually is, and why its price jumps around so much.
Step 1 of 7 · Hook
The 2 AM message
The Broke Squad
3 members
Dhvani
guys. bitcoin fell today so i bought some. it is on sale 😍
2:03
Tanishq
why are you awake. why am i awake
2:03
Dhvani
cheaper than yesterday. that is literally a sale
2:04
Tanishq
or it is falling?? 😭
2:04
Nemi
Dhvani. Who told you a falling price is a sale?
7:12
Dhvani
a reel. it felt so right at 2 AM
7:13
Nemi
I know. Feelings are loud at 2 AM. So here is the real question: what is Bitcoin, and why does its price jump around so much?
7:13
Step 2 of 7 · Guess
Guess first
Bitcoin has no shop, no boss and no price tag. So who decides what one Bitcoin costs today?
Yes. That is the whole secret. Nobody sets the price. The crowd does, and crowds change their mind fast. Let us watch it happen.
Step 3 of 7 · Build
A wild week for ₹10,000
Say ₹10,000 goes into Bitcoin. Each day the price moves. Tap a day to add it to the week.
Your ₹10,000 is now
Compared to the start
Days added
Now add the other days.
These moves are made up to show the feeling. Real Bitcoin has had days like these.
Step 4 of 7 · Concept
So what even is Bitcoin?
Bitcoin is digital money that lives on a network of computers, not in a bank. It is a type of crypto, short for cryptocurrency, which means money protected by secret codes.
Tap to compare it with the rupee.
The rupee
Who runs it
The RBI and the government
How much exists
They can print more when they need to
Its price
Fairly steady from day to day
Bitcoin
Who runs it
Nobody. No boss, no bank.
How much exists
Only 21 million will ever be made. No more, ever.
Its price
Set by buyers and sellers around the world, every second. It can move 10% in a day, and has.
Every payment is written in a shared notebook called a blockchain. Thousands of computers keep a copy, so nobody can secretly erase a line.
Owning Bitcoin is allowed in India, but it is not official money. No one promises to give your money back if an exchange fails.
Step 5 of 7 · Why it matters
How much is too much?
Say you have ₹1,00,000 in savings. Drag to choose how much goes into Bitcoin, then pick what Bitcoin does next. Nobody knows the future, so these are made up scenarios. Falls of 50% or more have happened before.
Drag the slider
Then Bitcoin…
You started with₹1,00,000
Your savings after₹90,000 · Down ₹10,000
₹20,000 went into Bitcoin and you lost ₹10,000. It hurts, but the rest of your savings keeps you calm.
Step 6 of 7 · Before and after
Same Bitcoin. Two different plans.
Tap to see each plan.
Reel, 2 AM, all in
How much
Most of the savings
When it is bought
When a price falls and a reel says sale
The nights
Checks the price 40 times a day
Result
Panics on the first big fall and sells low
Small slice, fixed plan
How much
₹2,000 a month, money you can afford to lose
When it is bought
Same amount, same date every month. No guessing the best day.
The nights
Sleeps
Result
A fall hurts a little, not a lot
One more thing to know. In India, profit from crypto is taxed at 30%, and a loss cannot be used to cancel a profit elsewhere. Rules change, so check the latest before you buy.
Nemi
I read that you should never invest money you cannot afford to lose.
9:10
Tanishq
so only the money i already gave up on? 😭
9:10
Dhvani
but my feelings count too. the 2 AM feeling was real
9:11
Nemi
They do count. They tell you how much risk you can sleep with.
9:11
Tanishq
so i need your rules and your feelings
9:12
Nemi
Both. And open your bank app.
9:12
Step 7 of 7 · Answer
Last one. Is a falling price a sale?
A reel says a falling price means Bitcoin is on sale. Is that right?
Yes. That is the smart way to think about it.
Cheaper is not a sale. It is just cheaper.A price only tells you it fell. It does not tell you it is worth buying.
Next chapter
Sensex and Nifty
You hear these two numbers on the news every day. Next time, what they are and why they move.
IAMB explains money basics. This is not advice to buy or sell anything. All prices and returns here are made up so the maths stays simple. Crypto is risky and can lose most of its value.
Why this topic: reports say Indian Gen Z often starts investing through crypto. See Business Standard.
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