Bitcoin as store of value
In addition to being a cryptocurrency, Bitcoin is also used as a value storage tool just like gold, foreign currencies or real estate. High price fluctuations mean Bitcoin is more risky than alternative tools.
Bitcoin reached its highest ever value, 20,089$ (1), on December 17, 2017. That year’s rapid rise in 2017 caught many people’s attention. Although the price has had upward spikes since then, it suffered a significant loss overall until March 2020. But, that’d not the end of the story, Bitcoin is continuing to fight back.
If you’d invested your money in Bitcoin when it was at its highest price, what would be your total savings today for the money you put into Bitcoin?
We have prepared a table to show whether the high price volatility in the Bitcoin price makes Bitcoin an effective store of value. If you were to purchase $100 worth of Bitcoin every month since December 19, 2017 you would have spent a total of $3,700.00 until December 1, 2020. Over this time, you would have accumulated approximately 0.49373755 Bitcoin from these monthly purchases. You can see details of monthly purchase and Bitcoin amount that you purchased monthly on the table.
Looking at the Bitcoin/USD price on December 1, 2020, you’ll find that 0.49373755 Bitcoin is worth more than $9.692,9601 (4)
Have you ever considered whether purchasing Bitcoin on a regular basis could make your funds more valuable?
(1) Source: https://coinmarketcap.com/currencies/bitcoin
(2) Bitcoin prices are calculated over the opening prices on the 1st day of the month
(3) When calculating the amount of Bitcoin, the commission rate was calculated as 0.01%
(4) Bitcoin / USD price is calculated as $19.633,77 on December 1, 2020. Source: https://coinmarketcap.com/currencies/bitcoin