Pricing Gold, Food, and Altcoins With the BTC Denominator: How to Measure an Asset’s Worth in Bitcoin
On February 21, bitcoin touched a lifetime price high at $57,844 per unit after the crypto asset’s market valuation crossed the $1 trillion zone for the first time in history the day prior. Meanwhile, a number of digital assets have seen fiat values increase as coins like litecoin, ethereum, and others gather gains against the U.S. dollar. However, when bitcoin is the base denominator in terms of value, a lot of coins have a long way to go to catch up.
Measuring Alternative Crypto Assets With Bitcoin
The crypto asset bitcoin (BTC) has seen phenomenal gains and a lot of other digital currencies have seen price increases as well. For instance, ethereum (ETH) is the second-largest digital asset in terms of market capitalization, and ETH has touched the $2,040 price range.
Now ETH has seen pretty decent gains against the U.S. dollar, as it up a decent 76.32% during the last month, and 249.90% over the last three months. Traditionally people price everything in their local fiat currency like U.S. dollars or euros, but things look a whole lot different when other crypto assets are priced against or with BTC.
For instance, data from messari.io shows an ether priced in bitcoin is worth 0.0341 BTC and on Tradingview the price is a hair higher at 0.0343 BTC at the time of publication. Now even though ether has seen decent gains against the U.S. dollar in 2021, it was a lot higher in comparison to BTC back in 2018.
At that time in January 2018, a single ETH was around 0.1090 BTC. Bitcoin’s price at the time was around a third of what it is today, while ether’s value was closer to where it was back then albeit a touch higher. The same can be said for a myriad of other alternative assets in the crypto economy.
Litecoin (LTC) is a good example, as LTC is a cryptocurrency with a market valuation of around $15.5 billion and holds the eighth largest valued market cap. Against fiat, LTC has done well this year increasing over 66% during the last month against the U.S. dollar.
LTC has gained 157% against the dollar for the last three months, but has yet to capture the coin’s all-time high (ATH). Litecoin is still 38% away from the ATH three years ago, which was $369.32 per LTC. Back in February 2018, a single LTC was around 0.019533 BTC but today one LTC is swapping for 0.003966 BTC.
Pricing Everything in Bitcoin Gives a Different Perspective
People can price anything in BTC and in other common denominators or vice versa. For instance, a person can get a 2021 Lamborghini Huracan EVO today for 5.08 BTC, a brand new Honda Accord is only 0.44 BTC. You can get a pristine 3.0-carat diamond ring for a single BTC and 0.12 BTC buys the average American food for a whole year.
Back in the day when a single coin crossed parity with a single Federal Reserve note ($1), it was a milestone. Then years later, it passed the value of one troy ounce of fine silver ($27), and everyone noticed.
Years later the price surpassed the value of one troy ounce of fine gold and that definitely got some attention. On Saturday, BTC ripped into another ATH and crossed parity with one kilo of fine gold. The fact of the matter is, the common denominator can be perceived a whole lot differently when measuring things in BTC or against it.
What do you think about measuring assets and other cryptocurrencies in bitcoin? Let us know what you think about this subject in the comments section below.
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Chinese Tea Retailer Joins the Crypto Mining Industry After Hiring Two Roles to Lead Its ‘Bitcoin Business Plan’
A Chinese tea retailer is looking to make its inception into the bitcoin mining business. Publicly-listed Urban Tea announced the expansion of its operations by appointing two executives to pursue its crypto plans.
Urban Tea Praises Cryptocurrencies’ Widespread Popularity
Per the announcement, Urban Tea Inc. hired Fengdan Zhou as the company’s new chief operating officer and Dr. Yunfei Song as an independent director. The tea retailer expects the new roles to lead the “company’s critical strategic expansion in blockchain and cryptocurrency mining.”
Zhou will look forward to implementing the bitcoin (BTC) business plan of the firm. Her experience includes having worked in blockchain data centers across Southeast Asia and managing crypto mining farms. Moreover, she has expertise in crypto hardware wallet development, the announcement details.
Also, Dr. Song comes from an academic background, specifically being a scientist at the Chinese Academy of Sciences. In fact, his expertise fields cover blockchain technology, crypto mining, artificial intelligence, among others.
Yi Long, CEO of Urban Tea, praised the widespread popularity that cryptos have gained recently. Also, he pointed out that the “world’s financial experts” have been building confidence in the future of cryptocurrencies and blockchain technology.
Long further commented on Zhou and Dr. Song’s hirings:
We expect that their industry expertise, combined with our growth strategy, will lead our expansion plan into the cryptocurrency mining industry. Going forward, we expect Urban Tea will start expanding into blockchain ecology, such as cryptocurrency mining, blockchain mine construction and maintenance, and cryptocurrency exchange operations.
Urban Tea, based in Hunan, China, was founded in 2011, and it’s currently listed in Nasdaq as MYT. As of press time, the company’s shares trade at $6.05, with a $45 million market capitalization. This maneuver is their first crypto-related business made over the company’s history.
Latest Tea Retailer’s Crypto Mining Venture Ended in a Disaster
There are some precedents of tea retailers joining the crypto industry. Long Island Iced Tea Corp, another publicly listed company, purchased 1,000 units of Antminer S9 manufactured by Bitmain in 2018 to join the crypto mining business. Afterward, they rebranded the business to “Long Blockchain Corp.”
However, the venture ended in a disaster. When Long Blockchain Corp acquired the crypto hardware, its stocks jumped by 500%. But mining’s plans went to the trash when crypto’s bears appeared in February 2018.
When Long Blockchain Corp’s shares were delisted by Nasdaq, the company also had to sell its tea business.
The story didn’t end there, as the FBI and the Securities and Exchange Commission then launched an investigation over allegations of insider trading and securities fraud.
What are your thoughts on Urban Tea’s announcement? Let us know in the comments section below.
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Blockchain tech will bridge the gap between DApps and enterprises
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Elon Musk Says Holding Bitcoin Is Less Dumb Than Cash, Disputes Peter Schiff’s Claims About Money and BTC
Tesla and Spacex CEO Elon Musk has clarified his position on bitcoin. Emphasizing that he is an engineer, not an investor, Musk says that bitcoin “is simply a less dumb form of liquidity than cash.” Musk also disputed gold bug Peter Schiff’s claims about bitcoin and commented on the price of the cryptocurrency.
What Elon Musk Thinks About Bitcoin
The CEO of cryptocurrency exchange Binance, Changpeng Zhao, was interviewed by Bloomberg Thursday after the demand for dogecoin on his exchange soared. He commented on Elon Musk’s enthusiasm towards the meme cryptocurrency during the interview.
“I’m surprised that Elon’s so gung-ho on dogecoin,” Zhao began, noting that “This is a decentralized, free world and anybody can like anything. He [Musk] can like dogecoin for any reason he likes.” Emphasizing his strong belief that Musk is not associated with dogecoin, the Binance CEO pointed out that Musk’s electric car company, Tesla, bought $1.5 billion of bitcoin, not dogecoin.
Musk saw the interview on Twitter and replied:
Tesla’s action is not directly reflective of my opinion. Having some bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.
“To be clear, I am ‘not’ an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla,” he elaborated.
Nonetheless, Musk clarified: “However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as BS as fiat money. The key word is ‘almost.’”
Gold bug Peter Schiff, who recently bashed Musk and Tesla for buying bitcoin, tweeted Friday: “According to Elon Musk ‘Bitcoin is almost as BS as fiat money.’ So Musk regards both bitcoin and fiat as BS.”
He further wrote: “I agree, I just think bitcoin, which is digital fiat, is even more BS than the paper fiat issued by central banks. Gold is not BS. It’s real money and better than both.”
Musk saw the tweet and replied to Schiff:
An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error.
The Tesla CEO continued, “The system will evolve to that which minimizes both.” He additionally noted, “That said, BTC & ETH do seem high.”
Refusing to give in to Musk, Schiff continued to express his opinion about gold, bitcoin, and money. On Saturday, he asked Musk to join him for a conversation on Clubhouse.
Do you agree with Elon Musk? Let us know in the comments section below.
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Day Trader Dave Portnoy Disturbed by Bitcoin Price — Vows to Never Buy BTC Again
Day trader Dave Portnoy has admitted that he is an idiot when it comes to bitcoin after the price of the cryptocurrency continually hit all-time highs. He panic-sold his bitcoins when its price was just around $11,000 and has now vowed to never buy the cryptocurrency again.
Dave Portnoy Regrets Panic-Selling Bitcoin at $11K
American day trader and founder of Barstool Sports blog Dave Portnoy admitted Thursday that he is an idiot when it comes to bitcoin and said that he will never buy the cryptocurrency again.
Portnoy bought his first bitcoin on Aug. 13, 2020, when the Winklevoss twins, who are his neighbors, went to his home and personally walked him through how to buy bitcoin on their cryptocurrency exchange Gemini. Portnoy invested $200K in BTC that day when the price of the cryptocurrency was around $11,172, according to markets.Bitcoin.com. He subsequently bought two other cryptocurrencies: chainlink and orchid.
However, when the price of some of his cryptocurrencies toppled, Portnoy panic-sold and got out of cryptocurrency altogether. He explained at the time, “I’m out on crypto because coins don’t always go up. Stocks on the other hand continue to always go up.”
Then on Thursday, the Barstool Sports founder admitted that he was an idiot about bitcoin as the price of the cryptocurrency continued to skyrocket, hitting multiple all-time highs. “I’m such an idiot … with bitcoin. At least I know I’m an idiot, alright,” he said, tweeting:
I know I’m an idiot with bitcoin. But I refuse to be the poorest man on the ship. I won’t swab the decks.
Portnoy exclaimed that he is not going to give bitcoiners “the satisfaction of [seeing him] jumping and being the last man on board, being the poorest guy on the ship.”
He ranted on: “‘Hey fucking poor guy, swab the deck. I’ll throw you a little fucking bitcoin’ and watch me scramble like a rat for like one 100th-millionth of a bitcoin while Winklevoss and fucking parabolic guy and Pomp [Anthony Pompliano] laugh at me from the fucking upper deck. Uh-uh. I’ll just be on a different ship.”
The parabolic guy he referred to was Jason Williams. “I love [the] parabolic guy,” Portnoy said, adding that he “is one of my favorite guys.” Nonetheless, the Barstool Sports founder insisted, “I ain’t swabbing his deck.” He further justified his decision to stay away from bitcoin by saying:
And God forbid, if I buy bitcoin and it crashes, that’ll force me to hate some people I don’t hate, and I don’t want to be put in that position.
On Wednesday, the price of bitcoin crossed the $51K mark and Portnoy made a video in which he lamented his decision to sell all of his bitcoins in August last year. “Bitcoin’s the only thing that doesn’t go down. $51,000. Bitcoin’s at fucking $51,000. It was at 11,000 in August. Jesus Christ.” He then concluded:
I’m never buying bitcoin. Never. Never, never. I don’t believe a thing about it, but I do think it’s profitable, and I think that with enough steam that it may just continue to go up forever, but I don’t buy the underlying junk behind it.
At the time of writing, the price of BTC stands at $56,279 after hitting multiple all-time highs throughout the week. Its market capitalization has surpassed $1 trillion. If Portnoy had kept the BTC which he bought at around $11K in August last year, his investment would have risen by about 412%.
What do you think about Dave Portnoy’s reaction to the rising price of bitcoin? Let us know in the comments section below.
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