Metrics was the 5th highest in the last eleven years, showing that the last year was really interesting for digital money.
The daily profitability of Bitcoin in 2020, as ascertained by an expert, shows an interesting sign of the price of the currency. With the world going through a health crisis and the economy, Bitcoin reacted with good profitability.
The price of Bitcoin is derived from market supply and demand. As a result, the digital asset appreciated more than 300% against the dollar in 2020.
This strong valuation made a Bitcoin expert calculate how much Bitcoin earned per day. This average disregarded falls and strong fluctuations, however, shows an interesting signal to the market.
Bitcoin’s daily profitability in 2020 was the 5th highest in its history
With Bitcoin approaching its 12th anniversary, the market Crypto Bank continues to analyse the performance of the currency. This is because since 2010 Bitcoin has been traded at brokers and has a market price then.
However, over the years Bitcoin has not always appreciated constantly. In 2014 and 2018, for example, the price of Bitcoin closed down in the year with -0.25% and -0.33% respectively.
With falls in just two years, the rest of the eleven years of Bitcoin trading has been bullish. And in 2020 the currency recorded its 5th highest daily rise in its history.
The calculations were made by specialist Jameson Lopp, co-founder and CTO of CasaHodl. According to Lopp, Bitcoin’s daily return in 2020 was +0.38%.
In that year, which finally ended, the price of Bitcoin recorded successive records, closing at over $ 28,000 for the first time in history. Bitcoin’s daily profitability over 11 years stood at 0.36%, or 2020 was above the average for Bitcoin.
According to CoinCorner CEO Danny Scott, if Bitcoin’s profitability remains at this average, the price in 2021 could close at $109,000.
What were the best years for Bitcoin in this metric?
If the year 2020 was the fifth best, the other four outstanding years were even better. In fourth place, for example, is the year 2011, when Bitcoin had a daily profitability of 0.76%.
In 2017, when it was the first Bitcoin historical high to exceed US$ 20,000 per unit, profitability was only the 3rd highest. In that year, Bitcoin remained up 0.78% per day.
The first two positions were in 2010 and 2013, when Bitcoin recorded 0.82% and 1.11% daily profitability. These calculations, it should be noted, were made after the annual closing of Bitcoin, not a promise of income made by anyone, but only a consolidation of past information.
The expert’s calculation still helps to demystify a common problem in Bitcoin’s history. Several fraudulent companies, the famous financial pyramids, claim that it is possible to achieve fixed daily profitability.
However, the Bitcoin story itself shows that daily profitability is a volatile measure each year and no fixed profitability can be achieved with Bitcoin. Even the currency’s profits may turn into a loss, as this occurred between 2013 and 2014. Therefore, when trading digital currency, keep your risk management always connected.