Bitcoin is the undisputed king among cryptocurrencies, if you have purchased or mined Bitcoins a decade ago, then congrats you must be a millionaire by now. Fast forward in 2020, you now have a Bitcoin profit calculator which will give you accurate details about how much profit you would have made back then from your current Bitcoin (BTC) investments.
But before we begin, let us learn about what exactly is a Bitcoin Profit Calculator?
What is a Bitcoin Profit Calculator?
A Bitcoin profit calculator is a tool that calculates the total profit of your total current Bitcoin investment. The BTC calculator can also be used to calculate your Bitcoin mining potential.
How Does The Bitcoin Profit Calculator Work?
The Bitcoin profit calculator is a very simple tool. Here is how you can use it to calculate Bitcoin profits.
Step 1: Enter the BTC amount that you wanted to invest.
Step 2: Enter the date and year on which you wanted to invest the amount.
Step 3: The Bitcoin Calculator will automatically provide an estimate of the profits or losses that you would have made based on the amount and date that you have entered.
The Bitcoin Profit Calculator shows you the profit in terms of the percentage of the Returns of Investment (ROI) and dollars as per the current dollar rate.
How does the Bitcoin Profit Calculator calculate the profit of BTC?
Once you enter the amount and date on which you wanted to invest, the BTC calculator then tracks the historic value of Bitcoin on that particular day and provides you with an estimate of the number (quantity) of Bitcoins which you could have purchased back then at the price you were willing to invest.
What is the advantage of using the Bitcoin Profit Calculator?
The BTC is a free tool which is a pretty handy tool for all Cryptocurrency investors. Did you ever find yourself in a situation where you were all set to make a heavy Bitcoin investment, however, at the very last moment you refrained from investing only to find out in future that you missed out on a massive opportunity.
There are many instances where it is a good decision to not invest in Bitcoin because of its price fall, but the rate at which it bounces back and grows is arguably unmatchable.
To sum it up, if you are not an expert level Bitcoin price chart reader, the BTC profit calculator tool is your best friend as it shows you the exact profit that you could have made, and based on those analyses you can make a safer future Bitcoin investment.
Please Note: The Bitcoin Profit Calculator and the Bitcoin Mining Calculator are two separate tools.
The Bitcoin Mining Calculator is used by miners to get an accurate estimate of the profit that can be made through their cryptocurrency mining skills. The Bitcoin Mining Calculator is a very useful tool for any crypto miner as it provides you with an hourly, daily, weekly, monthly, and yearly profit that can be made from your mining activities. The BTC mining calculator prepares its estimate based on the cost of Bitcoins, the cost of electricity, mining fees, pool feel, hash rate, and block rewards. Through this free tool, you can totally revamp and improve your crypto mining skills.
Both Bitcoin Calculators are quite an asset to have if you are a cryptocurrency investor or you are just in the initial stages of being a Bitcoin investor. With the ROI calculator, you can track the historic rates of the top cryptocurrency and understand the opportunity of gains or bearing losses that you have missed in the past by not investing in Bitcoins.
What Affects the Price of Bitcoins?
While the price of Bitcoin is affected by several factors, basic economic concepts are the biggest factors that make BTC so volatile and dynamic.
To properly study the fluctuation of Bitcoin price you need to have a good grasp of the concepts of elasticity, scarcity, supply, and demand.
Scarcity, Demand, and Supply: The huge demand for Bitcoin has a direct impact on its price. Bitcoins are preferred as a top cryptocurrency investment by investors mainly because of its scarcity factor.
A good example of a scarce commodity is Gold. People buy and invest in Gold because of its scarcity which increases its value. People then sell their Gold when they feel the price is right, and on any given day if a huge amount of gold is sold then it causes a drop in the gold price in the international market. Bitcoin applies the same functionality. The price of Bitcoin goes up as the demand increases.
Elasticity: Bitcoin price is highly volatile. Meaning that as soon as there is a slight dip in the price of BTC, many people pounce on the opportunity and buy more Bitcoins. This is why you always see a rapid gain in Bitcoin after its price dips. All Bitcoin investors actively looking to purchase a large number of BTC’s when the price is low.
Due to high volatility, the Bitcoin price is determined by scarcity, elasticity, supply, and demand.
Conclusion
You can easily check the ROI and profit that you could have made from an earlier investment in Bitcoin by using a Bitcoin Profit Calculator.
If you wish to study the future price of Bitcoin check out our analysis of the Bitcoin Price Prediction in 2020.