<p>It probably means the price drops and eventually the exchange suspends trading of BTC.</p>
<p>Nit pick: BTC <em>is</em> cash. You can't convert cash into cash but you can exchange cash in one currency for cash in another currency.</p>

CC BY-SA 4.0
2021-04-02T09:24:01.377Z
2021-04-02T09:24:01.377Z
RedGrittyBrick
<p>you said everyone want to sell. but the real question is who will buy from them. no need everyone to sell. if most holder try to sell. the price will go down. but not absolutely. some guy will buy at a higher price. that absolute situation does not help determine the trend.</p>

CC BY-SA 4.0
2021-04-03T05:44:48.617Z
2021-04-03T05:44:48.617Z
btc2doge
<p>In order for you to sell your BTC for fiat cash, another trader needs to be on the other end of that deal and be willing to buy your BTC in exchange for their fiat cash.</p>
<p>So as long as <em>someone</em> is willing to buy your Bitcoin for cash, it'll have a dollar value. Now, if <em>everyone</em> only wanted to sell Bitcoin, and nobody wanted to buy it, it would be worth $0.</p>

CC BY-SA 4.0
2021-04-02T09:32:12.960Z
2021-04-02T09:32:12.960Z
ieatpizza
<p>Would that mean that the crypto exchanges run out of liquidity and it turns into a Ponzi scheme?</p>

CC BY-SA 4.0
2021-04-10T18:00:32.383Z
There is a bit of a gap in reasoning here between people deciding to sell their bitcoin and why that would make Bitcoin a Ponzi scheme. It seems that either "Ponzi" is used as a more general term here than its commonly understood meaning, or the connection needs to be elaborated.
Murch
CC BY-SA 4.0
2021-04-12T06:32:49.187Z
The main premise is similar to say QuadrigaCX, where there's some liquidity but not enough, so there's a backlog of unfinished Crypto to FIAT transactions. In Quadriga's case that was because there was straight up stealing or appropriations of funds/coins. But this was more of a hypothetical question on my end...
Marin
CC BY-SA 4.0
2021-04-12T14:19:28.017Z
So, do you mean to ask whether Bitcoin exchanges are run on fractional reserve? That's something else than a [Ponzi](https://bitcoin.stackexchange.com/q/37217/5406).
Murch
CC BY-SA 4.0
2021-04-13T07:18:30.860Z
Correct.But it might lead to Ponzi , since it shares that element of risk of not being able to fulfill all orders at once.
Marin
<exchange-rate>
What would happen when everybody decides to convert their BTC to cash?
Marin
# What would happen when everybody decides to convert their BTC to cash?

(Asked by: username_0 on 2021-04-02)

Would that mean that the crypto exchanges run out of liquidity and it turns into a Ponzi scheme?

**Tags:** exchange-rate

> **Comments:**
> **username_1**: There is a bit of a gap in reasoning here between people deciding to sell their bitcoin and why that would make Bitcoin a Ponzi scheme. It seems that either "Ponzi" is used as a more general term here than its commonly understood meaning, or the connection needs to be elaborated.  
> **username_0**: The main premise is similar to say QuadrigaCX, where there's some liquidity but not enough, so there's a backlog of unfinished Crypto to FIAT transactions. In Quadriga's case that was because there was straight up stealing or appropriations of funds/coins. But this was more of a hypothetical question on my end...  
> **username_1**: So, do you mean to ask whether Bitcoin exchanges are run on fractional reserve? That's something else than a [Ponzi](https://bitcoin.stackexchange.com/q/37217/5406).  
> **username_0**: Correct.But it might lead to Ponzi , since it shares that element of risk of not being able to fulfill all orders at once.  

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## 3 answers

### Answer by username_4 on 2021-04-02. Score: 3 | Accepted answer

In order for you to sell your BTC for fiat cash, another trader needs to be on the other end of that deal and be willing to buy your BTC in exchange for their fiat cash.

So as long as *someone* is willing to buy your Bitcoin for cash, it'll have a dollar value. Now, if *everyone* only wanted to sell Bitcoin, and nobody wanted to buy it, it would be worth $0.


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### Answer by username_2 on 2021-04-02. Score: 1

It probably means the price drops and eventually the exchange suspends trading of BTC.

Nit pick: BTC *is* cash. You can't convert cash into cash but you can exchange cash in one currency for cash in another currency.


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### Answer by username_3 on 2021-04-03. Score: 0

you said everyone want to sell. but the real question is who will buy from them. no need everyone to sell. if most holder try to sell. the price will go down. but not absolutely. some guy will buy at a higher price. that absolute situation does not help determine the trend.


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