On February 21, bitcoin reached a lifetime price of $ 57,844 per unit, after the market valuation of the crypto asset crossed the $ 1 trillion zone for the first time in history the day before. Meanwhile, several digital assets have seen fiduciary values rise as currencies like litecoin, ethereum and others have made gains against the US dollar. However, when bitcoin is the basic denominator in terms of value, many currencies have a long way to go to achieve them.
Measuring alternative cryptographic assets with Bitcoin
The active bitcoin cryptocurrency (BTC) has seen phenomenal gains and many other digital currencies have also seen price increases. For example, ethereum (ETH) is the second largest digital asset in terms of market capitalization, and ETH has reached the price range of $ 2,040.
Now, ETH has made quite decent gains against the US dollar, up 76.32% in the last month and 249.90% in the last three months. Traditionally, people price everything in their local fiat currency, such as U.S. dollars or euros, but things look very different when other crypto assets are valued against or based on BTC.
For example, data from messari.io shows that an ether with a bitcoin price is worth 0.0341 BTC and in Tradingview the price is a higher hair, 0.0343 BTC at the time of publication. Now, although ether made decent gains against the US dollar in 2021, it was much higher compared to BTC in 2018.
At that time, in January 2018, a single ETH was around 0.1090 BTC. The price of Bitcoin at the time was about a third of what it is today, while the value of the ether was closer to where it was at the time, although a little higher. The same can be said for a myriad of other alternative assets in cryptoeconomics.
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 market capitalization. Against the fiat, the LTC performed well this year, increasing more than 66% last month against the US dollar.
The LTC has gained 157% against the dollar in the past three months, but has not yet reached the currency’s historical record (ATH). Litecoin is still 38% distant from ATH three years ago, which was $ 369.32 per LTC. In February 2018, a single LTC was around 0.019533 BTC, but today an LTC is trading for 0.003966 BTC.
Price of everything in Bitcoin offers a different perspective
People can price anything in BTC and other common denominators or vice versa. For example, a person can get a Lamborghini Huracan EVO 2021 today for 5.08 BTC, a brand new Honda Accord only costs 0.44 BTC. You can get an immaculate 3.0 carat diamond ring for a single BTC and 0.12 BTC buys average American food for an entire year.
At the time when a single currency crossed par with a single Federal Reserve note ($ 1), it was a milestone. Then, years later, it surpassed the value of a fine silver troy ounce ($ 27) and everyone noticed.
Years later, the price surpassed the value of a troy ounce of fine gold and that definitely caught the eye. On Saturday, the BTC hit another ATH and crossed the par with a kilo of fine gold. The fact is that the common denominator can be perceived very differently when measuring things in or against BTC.
What do you think about measuring assets and other cryptocurrencies in bitcoin? Let us know what you think about this in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Tradingview, Bitcoinwisdom.io,
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