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Dropbox and MacBook Pro Hard Drive Storage Question

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Hello all,

I have a question that in hindsight is probably dumb, but I just can't seem to figure out.

I thought that the whole point of dropbox, and other kinds of "cloud" storage was just that, the stuff you put there is stored in the cloud, rather than your computer.

I have dropbox, and I regularly put files like videos and documents into my dropbox folder from my mac. I also upload files from my computer to the dropbox website itself. Sometimes, I upload photos from my phone to my dropbox account.

My problem is that if I have 4.3 GB let's say, taking up my dropbox folder, 4.3 GB will be removed from my computer.

If I delete some or all of the items in the dropbox folder, I will free up that much space on my mac's harddrive.

Am I doing something wrong? This sounds like the exact opposite of what I want? Do I just have a completely wrong idea of what "the cloud" is?

Shouldn't stuff stored in the cloud NOT be taking up your hard drive space?

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