Post
Topic
Board Bitcoin Discussion
Re: why is bitcoin price important?
by
franky1
on 02/10/2022, 06:05:04 UTC
the thing about bitcoin though is, say it is priced at $20,000. someone invests $1000 into bitcoin. say bitcoin goes up to $21,000. thats a 5% return. but if bitcoin is $50,000 and it goes up by $1000 in one day then only 2% return. On your $1000 you made either $50 or $20 before fees and paying taxes. To really make money it would seem like you have to buy an entire bitcoin.

the real thing about bitcoin though
is when bitcoin had its last lag period the price only moved up and down by a couple hundred dollars

not it moves buy a couple hundred dollars

so in your example of the era of a base level of $20k vs base level in the future of 50k. the 20k moving by only 1k would be equivalent to the 50k moving by 2.5k

..
just remember small minnow traders. dont buy whole coins where they are pushing up the price by spending larger amounts more per order as the price rises. whats actually happening is the sellers are offering smaller decimal aoounts for the same small amounts

EG 0.02 for $400 =$20k
EG 0.02 for $420 =$21000

EG 0.008 for $400 =$50k
EG 0.008 for $420 =$52500

as you can see the buyer paid the same $20 extra.. but depending what era of price window. it affects the price more profoundly

enjoy that thought