Bitcoin

Bitcoin is somewhat of a mystery to me but it is similar to something I am familiar with that being closed end mutual funds. A closed end fund is established when investors pool their funds and puchase a certain portfolio which is then closed to any further purchases. The fund price varies depending on the performance of the fund and shares are traded on an exchange. Money does not flow in and out as shares are purchased and sold but the value of the fund changes accordingly. Say that one of the stocks in the fund is GM and GM stock rises on the open market and thus the value of the fund increases. Bitcoin was started with 21 million shares and that's it. Bitcoin is traded on exchanges like Coinbase and Binance. If I want to buy bitcoin, I place a buy offer and a given price and hope someone wants to sell at that price. The reverse is true for selling bitcoin. The money goes into my Coinbase account and later taken from or added to my bank account. I welcome any corrections or additions to this.