How much more Bitcoin can $1 get you against 2020 peak of $13,000?
The simple mathematical concept of a transitive property explains that if A = B, then B = A. So, in the cryptocurrency world, if 1 BTC = $13,000, then $13,000 = 1 BTC. Using that base-case, let’s scale down the equation. $1,000 can fetch you ₿0.076, and hence, scaling it down, $500 can get you ₿0.0384 and $250 can get you ₿0.0192. Finally, just one dollar can get you ₿0.00076.
This number seems small at first, but let’s look at how it has been devalued since the beginning of the year. Now, mind you, ‘devalue’ might be a harsh word, or rather a contradictory word, because $1 has been devalued simply because the price of the cryptocurrency has shot up by over 75 percent since the beginning of the year and nothing more.
So, how much was $1 worth at the beginning of the year? With BTC priced at around $7,200 then, $1 would fetch you around ₿ 0.000139. This is already about 1.8 times the amount you could buy right now. And with Bitcoin crashing to as low as $5,000 on 12 March (daily close), how much could $1 buy? That would be around ₿ 0.00199 or over 2.52 times the amount of Bitcoin you could buy right now.
Now, what does this tell you? Well, for starters, our valuation, at its very base, always measures 1 whole Bitcoin against a huge amount of dollars or stablecoins. Here, it would be prudent to measure it the other way, a single dollar gets you how much Bitcoin because one of the best things about the cryptocurrency is the ability of fractional-purchase, rather than whole purchases. I mean, it’s not as if you could buy $1 worth of a TSLA share, can you? You’ve to save up to whatever it will be tomorrow (provided Elon Musk doesn’t tweet out anything)!
Secondly, $1, since the beginning of the year and especially since the drop in March, has only been able to get you a lower and lower amount of Bitcoin. If you’re a speculative trader, a disciplined investor, or anyone in between, this would make you wonder, how many fewer Bitcoin can $1 get me tomorrow?