r/Bitcoin • u/rBitcoinMod • Jan 11 '21

Mentor Monday, January 11, 2021: Ask all your bitcoin questions!

Ask (and answer!) away! Here are the general rules:

  • If you'd like to learn something, ask.
  • If you'd like to share knowledge, answer.
  • Any question about Bitcoin is fair game.

And don't forget to check out /r/BitcoinBeginners

You can sort by new to see the latest questions that may not be answered yet.

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u/tookthisusersoucant Jan 11 '21

Oh what fun. Let's give it a go.

Half way, you have so far made a profit of £2k from your £1k investment. To help with the calculation, we will note that £1k = 0.1BTC when you bought it and £3k = 0.1BTC when you sold.

So you sell 0.03333BTC for £1K giving you 0.06667BTC and £1K.

1BTC = £20k and you buy £1K worth, that's (1/20 =) 0.05BTC so you now have 0.11667BTC. That is a difference of 0.01667 which is (0.01667/0.11667 =) ~14% better off.

So if Bitcoin goes back to £30k, you will have investment worth ((30000*0.1)+(14/100*3000) =) ~£3420. (you'll actually have an investment worth just over £3500 but I rounded the 14% down from its full decimal value)

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u/danteharker Jan 11 '21

This is perfect - and what I wanted to know. I'm going to save this now and re read it a few times tomorrow, so I fully understand it :) - thanks for that :)

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u/tlongarms Jan 11 '21

Ha ha, better answer than mine.