Historical data show a constant revaluation of bitcoin against the dollar
With the current downward trend in the price of bitcoin (BTC) in the market, the eyes of most investors are focused on the conversion of 1 BTC to USD without analyzing the change in reverse: what is the price of 1 dollar in BTC. A review of the statistics showing the amount of bitcoins needed to acquire a dollar since 2010 shows a constant revaluation of the cryptoactive in the last 8 years. With these data, a bitcoiner manifests itself on Twitter and argues in favor of preserving BTCs, pointing out the importance of weighing the positive and negative side of the alternatives and appreciating the asymmetry of the risks in any type of investment that is chosen.
In the table, which shows on the left the figures in BTC needed for the change to 1 dollar since 2011, we see a downward curve that indicates that in that year it took 1 BTC to acquire a dollar, while at the current date 0.00028 BTC is required; a fact that can be taken as an indicator of the loss of value of the dollar against bitcoin, and the importance that the cryptocurrency has acquired in recent years.
The figures show the growth of the bitcoin market. It is worth taking into account that despite the current generalized decline, the price of bitcoin has increased by more than 147,635.20 percent in relation to the price at which it was quoted at the beginning (2010).
As an example it should be noted that at the time of writing this note 1 BTC is $ 3,820, when about a month ago was around $ 6000, and even in early January 2018, when it was $ 15,000. But that when evaluating the current price of the cryptoactive in relation to its quotation in the year 2010 (approximately $ 0.07) it shows that the growth has been important.
A similar situation occurs in the relationship between the price of bitcoin and gold, since the precious metal par excellence has been significantly devalued since 2011, when the price of an ounce of gold was $ 1,800; Meanwhile, BTC had a value that ranged between $ 0.30 and $ 4 throughout the year, with a rise that brought it to almost $ 30 in June of that year.
Now, BTC is worth around $ 3800 today, and the ounce of gold is priced at about $ 1200. In this way, while in the span of 8 years gold has lost 33% of its value, bitcoin has seen an increase of 13,900% in its value.
This is how the ratio of bitcoin with both the dollar and gold points to the exponential revaluation of a cryptocurrency with ten years of history, against two assets with a long tradition in the market and that have not had the performance of bitcoin during that period. weather.