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.
Here’s the chart looking at how much more Bitcoin could $1 get you against the 2020 peak of $13,000, from the beginning of the year to the end of September, prior to Bitcoin breaking over $12,500.
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?
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