How to Calculate your BTC Profit including inflation

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Avatar for BitcoinBaby
2 years ago

So I was telling someone about my experiences in the crypto-verse and how I got started. 

For me, and I guess that is the case for many it started with Bitcoin. I bought about 1000 euros of it in 2020, the problem ...well it´s not really a problem...so the issue is that I kept adding BTC to that wallet whenever I made a nice bit of profit here and there.

By doing so I polluted the ability to track how my initial investment was doing. Now the discussion I had made me curious about what my 1000 euro´s of Bitcoin would have been worth today.

And if possible even including the inflation adjustment..... And peeps we are living in amazing times, because more often than not I am surprised that what I require already exists.

The Bitcoin Price Return Calculator

Just put in the amount and the dates and select with or without inflation correction. It will show that my $1100 dollars invested in BTC in 2020 would be worth $1940 today.

And I am not gonna spoil that good feeling by checking the inflation....Darn I am too curious and if you are too have a good look to see what the impact of the inflation would be ;)

So nothing fancy today just wanted to share this super easy tool with y´all  https://dqydj.com/bitcoin-return-calculator/

Now I have seen some discussions that CPI does not equal the real inflation, causing this calculator to possibly overstate your real return. Now for me that is so minimal that I am very happy with the outcome of the calculator. But if you want an even more detailed calculation:

You can correct these values on the real inflation rate (RIF)%:

Annualized Return New = Annualized Return Old - RIF

Ending Value New = Ending Value Old * (1-RIF/100)^(t/365)

where t=ending date-starting date.

Now that for me has no add value at all, but I wanted to give full disclosure. What I am mainly interested in is to have a bit of an idea of the inflationary impact on my investment. Because this impact can be quite high, over $150 dollars in 15 months.

Still, with or without the inflation correction, the return on investment (ROI) has been huge over those 15 months. But then comes the what if into play.... What if I bought my Bitcoin straight away when my friend first told me about crypto.

The first time I was suggested to buy some BTC was 5 months prior to when I actually bought Bitcoin... but looking at the outcome almost made weep:

Only 5 months difference in time, but almost 3000 dollars difference in ROI. Darn, I was too late to the party, as always. Still, I am in profit and enjoyed my time in the crypto-verse a lot. But it proves my theory, no hindsight is the best vision in the crypto space.

Thanks for the read, feel free to hit the like button and stay tuned for more of my rambles.

Post Scriptum:

Platforms where I Earn Crypto for my Content (Affiliate Links):

Torum - https://www.torum.com/signup?referral_code=bitcoinbaby

NoiseCash - https://noise.cash/u/BitcoinBaby

ReadCash - https://read.cash/r/BitcoinBaby

Hive - https://hiveonboard.com/?ref=whywhy

Peaked - https://peakd.com/register?ref=whywhy 

Publish0x - https://www.publish0x.com?a=l9avg4xnbG

 

Exchanges where I trade Crypto (Affiliate Links):

BitVavo Exchange- European. Higher trading fees (0.25 %) & Great Customer Service - https://bitvavo.com/?a=C21A94C2FD

Kucoin Exchange - Hong Kong. Okay, trading fees (0.1 %) & Contains a lot of low cap gems. Customer Service takes time - https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite

Bitmart - Global (USA allowed) Low, trading fees if you use BMX (0.025 %) & Contains a wide variety of coins - https://www.bitmart.com/en?r=7XFCVy

 

Places where I do Liquidity Mining and Staking  

Cake DeFi.  Here you have to invest $50 dollar and you get 30 dollars for free. You can withdraw your 50 dollars at any time or use them for Liquidity Mining, Staking, or lending to earn more DFI rewards. The 30 dollars is locked for 6 months but earning you interest for the 6 months. https://app.cakedefi.com/?ref=197670 

Celsius. Celsius Network provides a platform of curated services with fair interest, zero fees, and lightning-quick transactions. You can store your crypto and get rewards or lend crypto with low fees. Celsius has been around since 2017 and stated to always have the best interest of the community in mind. My experience so far has been good although I will not stake all my crypto with them...NYKNYC

https://celsiusnetwork.app.link/1046126043

Disclaimer

I do not have any connection with any company I am writing about. I am not being paid to write this article.

If you like my content, please hit like and subscribe. Because more Bitcoin baby Mistakes are coming......

Feel free to provide tips, comments, feedback, anything.....?
Remember that sharing will improve life in general!

Direct Donations are always welcome to keep me going:

BTC: bc1qdsrg7qaefxvel6hn6mjemjd4c8jjs40sasyvkp

ETH: 0x4216fEC23Ae7A7d9c46143Ce56C3e8f301F9868c

Bitcoincash:qqesav8kuwcrhl4y8qs9zfjg90cf8dnlkyz43u9w6u

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Avatar for BitcoinBaby
2 years ago

Comments

So what you earn from here also swap to BTC?

$ 0.00
2 years ago

It differs in general I save it up in Celsius and sell when the market is hot

$ 0.00
2 years ago

I am so curious now what it is when you do take inflation into account!

$ 0.00
2 years ago

Take a look at the first picture...I said if you have a good look ;)

$ 0.00
2 years ago

Haha I studied history, I do very poorly with numbers!

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2 years ago