On February 21, Bitcoin hit a lifetime high of $ 57,844 per unit after the market valuation of the crypto asset topped the $ 1 trillion zone for the first time in history the previous day. Meanwhile, some digital assets have seen fiat values soar as coins like Litecoin, Ethereum, and others make gains against the US dollar. However, if Bitcoin is the base denominator in terms of value, many coins still have a long way to go to catch up.
Measure Alternative Crypto Assets Using Bitcoin
The crypto asset Bitcoin (BTC) saw phenomenal gains, and many other digital currencies also saw price increases. For example, Ethereum (ETH) is the second largest digital asset in terms of market capitalization, and ETH has hit the price range of $ 2,040.
Now ETH has seen pretty decent gains against the US dollar as it is up a whopping 76.32% last month and 249.90% in the last three months. Traditionally, people value everything in their local fiat currency like US dollars or euros, but things look very different when other crypto assets are valued against or at BTC.
Bitcoin (BTC) hit an all-time high on February 21, 2021, hitting $ 57,844 per unit against the US dollar. But what if we measure other assets in BTC?
For example, data from messari.io shows that an ether identified in Bitcoin has a value of 0.0341 BTC, and at Tradingview the price at the time of publication is a hair higher at 0.0343 BTC. Although Ether saw decent gains against the US dollar in 2021, it was much higher compared to BTC in 2018.
In 2018, a person with a single ETH could get a lot more BTC. This year, a person with a single ether will receive far less BTC.
At that point in January 2018, a single ETH was at 0.1090 BTC. The price of Bitcoin at that time was around a third of what it is today, while the value of Ether was closer to what it was then, albeit a little higher. The same goes for a variety 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 has the eighth largest market capitalization. LTC has done well against Fiat this year, gaining over 66% against the US dollar last month.
Litecoin (LTC) was worth a lot more in terms of BTC back in February 2018.
LTC is up 157% against the dollar in the past three months but has not yet hit the coin’s all-time high (ATH). Litecoin is still 38% off the ATH three years ago, which equates to $ 369.32 per LTC. In February 2018 a single LTC was 0.019533 BTC, today one LTC exchanges for 0.003966 BTC.
The pricing of everything in Bitcoin offers a different perspective
People can rate anything in BTC and in other common denominators, or vice versa. For example, today a person can get a 2021 Lamborghini Huracan EVO for 5.08 BTC, a brand new Honda Accord is only 0.44 BTC. You can get a flawless 3.0 carat diamond ring for a single BTC, and 0.12 BTC buy the average American food for an entire year.
Back then, when a single coin crossed parity with a single Federal Reserve ($ 1) note, it was a milestone. Then, years later, it was worth an ounce of fine silver ($ 27) and everyone noticed.
Years later, the price surpassed the value of an ounce of fine gold, and that definitely got attention. On Saturday, BTC tore into another ATH and crossed parity with a kilo of fine gold. The fact is that when measuring things in BTC or against it, the common denominator can be perceived quite differently.
What do you think of measuring assets and other cryptocurrencies in Bitcoin? Let us know what you think on this matter in the comments section below.
Tags in this story
1 kilo of gold, 1 ounce of gold, 1 ounce of silver, Altcoins, Bitcoin, Bitcoin (BTC), BTC denominator, diamond ring, ETH, Ethereum, Fiat value, groceries, gold, Honda Accord, Lamborghini, LTC, Measure, US dollar
Photo credit: Shutterstock, Pixabay, Wiki Commons, Tradingview, Bitcoinwisdom.io,
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
