Cryptocurrencies have gained a lot of popularity and investment in recent years. Bitcoin, in particular, has begun to be accepted as a great investment tool all over the world. Sometimes it lost its investor, and sometimes it made a big profit. So if you bought 10 thousand lira worth of Bitcoin exactly five years ago, how much would your money be right now?
How much has the value of Bitcoin changed in the last 5 years?
Bitcoin has been volatile in recent months. So much so that the crypto money, which once broke its own record by reaching a value of 68 thousand dollars, saw the lowest value with 17 thousand dollars in the past months. In recent weeks, it has been between $25,000 and $30,000.
Let’s take a look at the global cryptocurrency exchange Binance to find out the value of BTC in the past years. According to the charts, Bitcoin was traded at $8,233 on May 20, 2018, exactly 5 years ago.
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Continuing its recent upward trend, Bitcoin exceeded 28 thousand dollars and broke new ground after a long time.
On May 20, 2018, the dollar was 4.70 TL and accordingly 10 thousand lira was equivalent to 2 thousand 127 dollars. With this money, you could buy 0.2583 Bitcoin at that time. So let’s look at the instant value of the cryptocurrency and find out how much money we will have right now.
Currently, Bitcoin is instantly traded at $ 26,879. The dollar is 19.81 TL. If you had sold the 0.2583 Bitcoin you bought in 2018 right now (May 20, 2023), you would have received $6,935. This corresponds to 137 thousand TL.
When we subtract the amount you deposited from the total money we received, we arrive at the result of 127 thousand TL (6 thousand 410 dollars) on paper. In other words, you made a profit of 226 percent in dollars. However, this needs to be looked at from another angle.
Because the dollar has increased to 19.81 (321 percent) in the last 5 years, and therefore, 10 thousand TL in 2015 and 10 thousand TL today are not the same in terms of purchasing power. So much so that in this context, inflation has risen at a serious level.
The dollar has appreciated by 321 percent against the TL since 2018. Since the $2,127 you invested in BTC that year corresponds to $6,935 at the current exchange rate, you seem to have made a profit of 226 percent. But actually it is not like that.
So much so that when we consider that the TL has depreciated against the dollar, you have lost approximately 22.76 percent of your Bitcoin investment. If the dollar had remained at 4.70 TL as it has been since 2018, you would have made 226 percent profit.
- 1 Bitcoin – on May 20, 2018: 8 thousand 233 dollars
- 1 Bitcoin – on May 20, 2023: 26 thousand 879 dollars
- $1 – On May 20, 2018: 4.70 TL
- $1 – On May 20, 2023: 19.81 TL
- If we do not take into account the appreciation of the dollar: 226 percent profit
- When we take into account the appreciation of the dollar: 22.76 percent loss
So what do you guys think about this issue? You can share your views with us in the comments section below.