A lot of monkeys lived near a village. One day a merchant came to the village to buy these monkeys! He announced that he will buy the monkeys @ $100 each.
The villagers thought that this man is mad. They thought how can somebody buy stray monkeys at $100 each? Still, some people caught some monkeys and gave them to this merchant and he paid them $100 for each monkey. This news spread like wildfire and people caught monkeys and sold them to the merchant.
After a few days, the merchant announced that he will buy monkeys @$200 each. The lazy villagers also ran around to catch the remaining monkeys! They sold the remaining monkeys @$200 each.
Then the merchant announced that he will buy monkeys @$500 each! The villagers start to lose sleep! … They caught six or seven monkeys, which was all that was left and got $500 each.
The villagers were waiting anxiously for the next announcement. Then the merchant announced that he is going home for a week. And when he returns, he will buy monkeys @$1000 each! He asked his employee to take care of the monkeys he bought. He was alone taking care of all the monkeys in a cage.
The merchant went home. The villagers were very sad as there were no more monkeys left for them to sell at $1000 each. Then the employee told them that he will secretly sell some of the monkeys @$700 each. This news spread like wildfire. Since the merchant now buys monkeys @$1000 each, there is a $300 profit for each monkey.
The next day, villagers made a queue near the monkey cage. The employee sold all the monkeys at $700 each. The rich bought monkeys in big lots. The poor borrowed money from money lenders and also bought monkeys!
The villagers took care of their monkeys & waited for the merchant to return. But nobody came! … Then they ran to the employee but he had already left, too!
The villagers then realized that they have bought the useless stray monkeys @ $700 each and are unable to sell them!
Now you understand how Bitcoin works.
Well with that solved, back from PSP and ready to go to work…LOL