This is the Much Bitcoins your one dollar bill can buy today

Fredrick Awino
16.08.2022
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Bitcoin stands tall in the long list of cryptocurrencies that continue to change the nature of online transactions. You may already be aware that bitcoin is the pioneer crypto but since then, more coins that are collectively called altcoins. So many perceptions have emerged around bitcoins with some praising it yet others  including the IMF loathe it. Whichever perspective one has about bitcoin, trading or owning them require a fiat money to purchase them.  

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

Also read: Leading Cryptocurrency Exchange for you

Cryptocurrencies are a talk of town today-whether for good reasons or otherwise.  People today easily entertain the possibility of being part of an evolving world of virtual currencies. You must have now known much about cryptocurrency coins and their functionalities. This investment is arguably one of the most lucrative. Among all the crypto coins, Bitcoin is the mostly traded one. Like any other investment, it has one of the most turbulent trading histories among asset classes. This feature constitutes one of the many risks that traders here face. The value of a single bitcoin increased significantly for the first time in the cryptocurrency’s history in 2010. During this period, the bitcoin value surged from a little fraction of a penny to $0.09.

If you decide to trade in bitcoin today, it’s not a must to purchase a whole in the trading market. Ideally, it is possible to buy a partial bitcoin instead. Always keep in mind that a single bitcoin consists of many 100,000,000 cents known cryptographically as Satoshis. Majority of people across the world use the Satoshis’, a sort of virtual money that is breaking the globe down into its component parts. Thus, investing in bitcoin is as easy as purchasing the desired number of Satoshis’.

What is the average Bitcoin that a Dollar can buy today?

So, how much Bitcoins on average can my dollar buy today?  With a 24-hour trading volume of $22,458,824,376, an average bitcoin buys at $24,110. The value of Bitcoin is not always stable. It fluctuates every single second just like other fiat currencies such as dollars and euros. Because we live in a dynamic world, it is difficult to determine the prices of cryptocurrencies. 

In fact, we do not even know what will happen to the price of Bitcoin if large retailers such as Amazon decide to accept it as a means of payment.

These prices are also influenced by the values charged by different exchange agencies. You are likely to notice that when there is a huge variation in prices within a number of exchanges one is likely to take advantage of the situation over the other. Here, expect to see the one with cheaper prices selling its bitcoins expensively to the other. 

This strategy is known as arbitrage and may result in price homogeneity on different exchange platforms in a manner of minutes. However, it does not take place in all the platforms especially where their accessibility to bitcoin is complex. If you are in Africa, you are likely to exchange your bitcoins at a completely different price than those offered in the continental Europe. Still, the prices here can be attractive to the users here because they are used to that pricing tactics and trends.

What you need to know about Bitcoin Price

It is important to understand that the Bitcoin price is determined by so many factors. Everyone who wants to take part in the buying and selling of the coins decides what it will be. Even though many different elements are involved, your price is always the deciding factor. 

Interestingly, the process of bitcoin trading permits you to share it and leverage the opportunity by making the profit out of it. Similar to other situations, when selling their bitcoins to interested parties, producers (in the case of Bitcoin miners) can set a price by coming to an agreement. You can just imagine a standard transaction that involves two parties; one offers a price, and if the other is willing to accept it after some haggling, the deal is sealed.

Bitcoin Price from 2021 to present

The highest Bitcoin prices were experienced in 2020. It only took less than a month for its price to rise beyond the record set in 2020. By January 7, investors could purchase a single bitcoin at $40,000. Mid-April the same year constituted a period that saw the rise of many Bitcoin millionaires. During this time, the bitcoin prices reached new all-time highs of beyond $60,000. With the influence from institutional interests, the prices were pushed further and the Bitcoin reached a peak of $63,558 in April 2021.

However, a significant drop in price was experienced in November 2021. Experts posited that the advent of the new Covid-19 variants and inflation could have contributed to such a meltdown. The prices have further continued to decline since January 2022.  On an Average, the investors have been able to buy a single bitcoin at prices ranging between $22,000 and 30,000 from May 2022 and August.

Final Take way about bitcoin buying using dollars

The prevailing bitcoin prices must be a major source of concern to you as an investor. A prolific dealer in crypto or even the starters know too well that the profit margins depends on the price you use to buy and sell your coins. So one needs to acutely master the art of when it is best to but or sell their bitcoins. In case you feel that trading your cryptos may not be a good idea because of the low prices, there are still a number of methods to use to make legitimate money with cryptos. To learn more about this, you can also check ways to earn from crypto other than trading. 

 

 

 

Author Fredrick Awino