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On February 21, bitcoin hit 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, a number of digital assets have seen fiat value rise as coins such as Litecoin, Ethereum, and others earn against the US dollar. However, when bitcoin is the basic denominator in terms of value, many coins have a long way to go to catch up.
Measuring Alternative Crypto Assets with Bitcoin
Bitcoin crypto asset (BTC) has seen phenomenal gains and many other digital currencies have seen price increases as well. For example, ethereum (ETH) is the second digital asset in terms of market capitalization, and ETH has hit the price range of $ 2,040.
Now ETH has made some pretty decent gains against the US dollar, rising a decent 76.32% in the past month and 249.90% in the past three months. Traditionally, people value everything in their local fiat currency, like the US dollar or the euro, but things look a lot different when other crypto assets are priced against or with BTC.
For example, data from messari.io shows that an ether valued in bitcoin is worth 0.0341 BTC and on Tradingview the price is a hair higher at 0.0343 BTC at the time of publication. Now, even though Ether made decent gains against the US dollar in 2021, it was much higher than BTC in 2018.
At that time, in January 2018, a single ETH was around 0.1090 BTC. The price of Bitcoin back then was about a third of what it is today, while the value of Ether was closer to what it was then, although a little higher. The same can be said for a myriad 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 holds the eighth largest market capitalization. Against fiat, LTC has done well this year, rising over 66% in the past month against the US dollar.
LTC has gained 157% against the dollar over the past three months, but has yet to hit the coin’s record high (ATH). Litecoin is still 38% of ATH three years ago, which was $ 369.32 per SLD. In February 2018, a single LTC was around 0.019533 BTC, but today one LTC is trading for 0.003966 BTC.
Pricing everything in Bitcoin gives 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 costs only 0.44 BTC. You can get a 3.0 carat virgin diamond ring for just one BTC and 0.12 BTC buys the average American food for an entire year.
Back in the days when a single coin crossed parity with a single Federal Reserve note ($ 1), this was a milestone. Then years later it passed the value of a troy ounce of fine silver ($ 27), and everyone noticed it.
Years later, the price has surpassed the value of a troy ounce of fine gold and it certainly caught the eye. On Saturday, BTC tore up another ATH and broke through parity with a kilogram of fine gold. The point is, the common denominator can be seen very differently when measuring things in BTC or against it.
What do you think about measuring assets and other cryptocurrencies in bitcoin? Let us know what you think of this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Tradingview, Bitcoinwisdom.io,
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