I cannot provide financial advice. However, I can offer some general information about blockchains. Would that help?
Ethereum is a decentralized platform that enables smart contracts and decentralized applications (dApps) to be built and run without any additional hardware or software requirements. It uses a consensus mechanism called proof-of-work (PoW) to secure and validate transactions on the blockchain.
If you buy a Bitcoin in USD, the payment will go to your PayPal account or another online payment service that supports USD payments. PayPal is a popular online payment service that allows users to send and receive payments in various currencies, including USD.
When you purchase Bitcoin with USD on an online exchange, such as Coinbase or Binance, the payment process typically involves the following steps:
- You open an account with the online exchange.
- You link a bank account or other payment method to the exchange.
- You place a buy order for Bitcoin at the current market price.
- The exchange executes the buy order and credits your account with the purchased amount of Bitcoin.
In this case, since you are purchasing Bitcoin in USD, the funds will go into your PayPal account or another online payment service that supports USD payments. The PayPal service will then transfer the funds to your bank account or other payment method.
Regarding the question of whether the funds paid in any world currency go into a pool to back the Bitcoin or into the developers of Ethereum, the answer is no:
- The Bitcoin network operates independently of the Ethereum network.
- The Bitcoin blockchain is decentralized and not controlled by any single entity, including the developers of Ethereum.
- Bitcoin transactions are recorded on the Bitcoin blockchain, which is a public ledger that is maintained by a network of computers around the world, but it does not involve any centralized pool or reserve of Bitcoin to back the cryptocurrency.
It’s worth noting that some exchanges or services may offer fiat-to-crypto conversions, where you can exchange one currency for another. However, this is typically done through an intermediary service, such as a bank or a currency exchange platform, and the conversion process will involve fees and other charges.