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, several 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.
Now ETH has heavily gained against the U.S. dollar, after a surprising 76.32% over the past month, and 249.90% during the last 3 months. Customarily, human beings set prices accordingly in their local fiat currency such as U.S. dollars or euros, however, matters appear entirely different when different assets are priced against or with BTC.
For example, analytics from messari.io shows an Ethereum (ETH) priced in bitcoin is worth 0.0341 BTC and on Tradingview the price is a bit larger at 0.0343 BTC at the time of publication. Although ether has seen decent gains resistant to the U.S. dollar in 2021, it previously was much higher in comparison to BTC back in 2018.
In 2018, an individual could purchase a lot more BTC with one ETH. This year, individuals will get far less BTC with one ether.
Back then in January 2018, one ETH was approximately 0.1090 BTC. Bitcoin’s price during that time was nearly a third of what it is today, while ether’s price was closer to where it was back then although a touch higher. This can also be said for a bundle of other alternative digital assets and Altcoins in the crypto economy.
Litecoin (LTC) is a superb example, as LTC is a cryptocurrency with a digital market valuation of around $15.5 billion and holds the 8th largest valued market cap. Against fiat, LTC has achieved much this year growing over 66% over the past month in opposition to the U.S. dollar.
Litecoin (LTC) was also priced a whole lot more in BTC terms back in February 2018. LTC has gained 157% against the dollar these last three months and has yet to beat the coin’s all-time high. Litecoin is sitting 38% away from the All Time High three years ago, for $369.32 per LTC. Back in February 2018, one LTC was nearly 0.019533 BTC but today one LTC is trading at 0.003966 BTC.
Pricing Everything in Bitcoin Gives a Different Perspective
People can price just about anything in BTC and other common denominators or vice versa. For example, someone could purchase a 2021 Lamborghini Huracan EVO today for 5.08 BTC, while a brand-new Honda Accord would be priced at 0.44 BTC. You can get a luxurious 3.0-carat diamond ring for one whole BTC and 0.12 BTC could sustain the average American food budget for a whole year.
Back then a single coin crossed the value of a single Federal Reserve note at ($1), it was a great milestone for Bitcoin. As time passed, it rose beyond the value of one troy ounce of fine silver ($27), and many began to take notice.
Years later the price of a single Bitcoin finally surpassed the value of one troy ounce of fine gold and that drew investors’ attention. This Saturday, BTC beat another All Time High and crossed parity with one kilo of fine gold. The point of the matter is the divisibility of Bitcoin can be perceived a whole lot differently when measuring things in BTC or against it.
What do you think about pricing assets and other cryptocurrencies in Bitcoin? Tell us what you think about this topic in the comments section below.