How Does The Bitcoin Profit Calculator Work?
In order to use this Bitcoin profit calculator - you need to enter the amount you were willing to invest and the date you were willing to invest it at. Based on those two inputs, the calculator will determine the profits (or loss) you’d have made since then. It expresses the profit in terms of dollars as well as the percentage of the Returns on Investment (ROI).
This calculator considers the historic value of Bitcoin on the day you wanted to invest - and based on that determines the number (quantity) of Bitcoins you’d have been able to purchase at the price you were willing to invest.
There are many moments when we almost-invest but back out at the last moment - and the price changes shortly afterwards. Sometimes, that leaves us relieved if the price falls - however, on most occasions we’re left scratching our heads as the price bounces to a new high while we become mere onlookers.
Basically, this Bitcoin Profit Calculator is a tool which shows you that at a majority of occasions, if you were to invest in Bitcoin, you’d have made a significant profit. However, one must note that this is a profit calculator and not a Bitcoin mining calculator.
A Bitcoin Mining Calculator helps miners determine the amount of profit that they would make on their cryptocurrency mining activity. A bitcoin mining calculator considers the cost of electricity, the cost of Bitcoins, the hash rate and various other factors such as the difficulty of mining, pool fees, block rewards etc. to determine the hourly, daily, weekly, monthly and yearly profit that you would make on your mining activity.
As opposed to that, this ROI calculator helps you understand the opportunity that you have missed in the past by not investing in Bitcoins by keeping into consideration the historic rates of the currency.
There are a number of factors which affect the price of Bitcoins. However, the biggest reason that Bitcoin prices are so dynamic and so volatile are some basic economic concepts. One has to understand the concepts of elasticity, demand and supply, and scarcity.
Demand, Supply, and Scarcity: Bitcoin has a price because there’s a demand for it. People are willing to buy Bitcoins and invest in them - one of the biggest reasons for the same is because of the scarcity factor. You can almost compare Bitcoins to gold in this aspect - Gold is a scarce resource and people are willing to invest in it and hold it. Gold is sold off to get cash and if a large amount of gold is sold off - the price of gold falls in the international markets. Bitcoin functions in a similar manner. The higher the demand the higher the price.
Elasticity: Price elasticity of Bitcoins is quite high. This means that a little drop in the price of Bitcoins could result in a large number of people buying Bitcoins. This is why dips are always followed by periods of rapid price gain. People want to capitalize on the low prices and buy in large numbers.
These are the major factors which determine the price of Bitcoins and are a result of the high volatility. Using our Bitcoin Profit Calculator, you can easily check the profit as well as the ROI you’d have gotten had you invested on an earlier date.
Bitcoin News: News matters a lot too. Many times it is positive and many times it is negative. This leads to in heavy trading in the market either in sell or buys mode.
Also if you are looking for what will be the future price of bitcoin? check out Bitcoin Price Prediction.