By now, you’ve almost certainly heard of Bitcoin. Around 46 million Americans have now invested in cryptocurrency, making it one of the fastest-growing commodities in recent years. So, how much is Bitcoin worth?
That’s actually quite a complicated question. This article tells you everything you need to know about the value of bitcoin.
The Value of Bitcoin in Dollars
Of course, one way to look at the value of Bitcoin is to examine how much it’s worth in US dollars. As of the 23rd of July 2021, the value of a single Bitcoin was $32,528.13. While this is a lot of money, the value of Bitcoin has actually decreased quite significantly in the last few months.
Months ago, the price of Bitcoin was well over $40,000. One thing that you’ll notice about Bitcoin and other cryptocurrencies is that the value is quite volatile. On any given day, the price can easily increase or decrease by thousands of dollars.
This can be quite scary as a first-time investor, but these kinds of fluctuations tend not to scare Bitcoin veterans.
The value of Bitcoin in dollars is also significant if you want to buy Bitcoin through a site like ByteFederal.
The Value of Bitcoin as an Investment
A lot of the value in Bitcoin comes from its potential as an investment. The price of bitcoin is susceptible to a huge upswing, so it makes sense to see the value in terms of what it could be worth rather than what it’s worth right now.
For this reason, many people see Bitcoin as more valuable when the price is lower than when the price is high. This is because you can buy Bitcoin at a low price and then sell it for a higher price.
This is why many investors will enthusiastically buy Bitcoin as the price goes down. They’re confident that the price will go back up, so cheap Bitcoin has a lot of value to them.
The Value of Bitcoin as Technology
Some believe that Bitcoin will usher in a financial revolution. Some Bitcoin enthusiasts go so far as to believe Bitcoin will revolutionize global finance. Some argue that Bitcoin will eventually replace the global banking system by creating a worldwide, decentralized currency.
People with this view don’t necessarily worry about the price in the short term as they believe Bitcoin will be worth a huge amount of money in the long term. People who believe in Bitcoin to this extent are generally very reluctant to sell their coins.
The Value of Bitcoin Depends on Your Perspective
This article has demonstrated that the value of Bitcoin depends on your perspective. If you’re someone who just wants to spend your coins, the current Bitcoin to the dollar exchange rate is very important.
On the other hand, if you’re a long-term investor, the value is much less clear-cut.
If you want to learn about other Bitcoin-related topics, check out the rest of our blog posts.