How much is 0.01 Bitcoin worth?

Table of Contents

Since 2016 Bitcoins have become one of the most valuable assets that you can have. But is this the right time to invest in it? How much does it really cost? These are obvious questions that you need to ask before deciding to buy or sell Bitcoins.

Because of its meteoric rise and its decentralized nature, Bitcoin markets witness constant fluctuations. So it’s important to always stay updated if you are investing in it. To understand the fluctuating cost of Bitcoins, you have a peep behind the scenes to find out how the Bitcoin market works.

Exchange Differences

So how much does 0.01 Bitcoins cost? At the time of writing this post on 9th August 2020, 0.01 Bitcoin costs 89.63 Pound sterling according to Google. It is tempting to take this one simple value as a standard. But there is much more to it.

Different crypto-exchanges may have different prices at the same time. Since Bitcoin has no centralized system controlled by a bank or a nation, the prices are decided by the demand and supply of the marketplace. It can also vary depending on the volume being traded in that particular exchange. Market places with a low volume of trade generally have lower prices for Bitcoins.

how much is 0.001 bitcoin

If you read the subtext on Google’s value of 0.01 Bitcoin, you will see that it’s sourced from Coinbase. But that is just one exchange market amongst thousands. For instance, at the same time (Sunday, August 09, 2020, 07:34 AM GMT) several different values of 0.01 Bitcoins are:

Coinbase – 89.63 Pound sterling
Currencio – 89.45 Pound sterling
Coinchef – 89.33 Pound sterling
Kraken – 89.78 Pound sterling
Likeforex – 88.92 Pound sterling

The differences in value might seem trivial at a first glance. But imagine how the difference compounds when moving high volumes of Bitcoins.

If you are just starting out on crypto trading, then the differences might seem a little confusing. But these differences in prices also offer an opportunity. You can buy Bitcoins at a lower price in one market and then sell it for higher in another. Capitalizing on the price variations, you can turn a profit by arbitrage.

In an efficient crypto-economy, these differences would disappear due to arbitrage. But the infrastructure needed for traders to buy and sell bitcoins across multiple platforms is still not available.

So before you start buying Bitcoins do a comparative study of the different exchange rates and start trading with the best revolution software.

Fluctuations Over Time

If you have been following Bitcoin news, you would know by now how radically the Bitcoin prices can shift overnight and how to invest in cryptocurrency. It can turn investors into millionaires or make them lose everything they have. So what creates these fluctuations?

Since the supply of Bitcoins is relatively stable, most of the volatility comes from the fluctuations of demand. One of the biggest motivators in demand is news.

Bad news like Bitcoins being used to purchase drugs via Silk Route, or sudden bankruptcies of exchanges like Mt. Gox and Yapian Youbit can affect the demand negatively. Headlines regarding successful Bitcoin hacking attempts also have the same effect. Conversely, success stories of Bitcoin traders can trigger growth in demand.

Due to its design, the total number of Bitcoins (21 million) is fixed and finite. This is dramatically different from the supply of fiat currencies, which the nations manipulate. The governments can increase the volume of fiat-currency, to better manage inflation, employment rate, etc.

Depending on their government’s efficiency investors might perceive Bitcoins as a more stable investment and thus increase its demand. In simple terms, Bitcoin has a perceived value like gold.

Another reason for its volatility is the illegal ‘pump and dump’ activity by large asset holders. This is a process through which investors with large holding come together and start buying large amounts of Bitcoins in the same exchange.

This drives up the price, triggering a buying spree among other people. But within a minute when the prices peak, these investors with massive holdings sell off the Bitcoins all at once making the price nosedive. This deliberate manipulation of the market is illegal but only too frequent in the smaller exchanges.

To give a more practical outlook of the fluctuations, we can take today’s (9.8.2020) prices based on Coinbase. Time taken is UTC, and the currency is Pound sterling.

0.10 a.m – 90.21
0.30 a.m – 90.50
1.55 a.m – 89.63
3.35 a.m – 90.25
6 a.m – 89.44

These variations would be exaggerated more and more, the longer the time frame. In truth, the value of Bitcoins is always fluctuating. So even though the price of 0.01 Bitcoin right now is 89.63 Pound sterling, it is bound to be different by the time you read this.

price history of bitcoin

A Brief Price History

Bitcoins have been volatile from the very start. The first real price increase was in July 2010 when the value increased from $0.0008 to $0.08 for a single coin. In 2013 Bitcoin saw another jump from $13.50 to $220 per coin before it crashed down to $70. But it rallied again at $1,079 on December 4th, 2013.

2014 started out high but the market crashed to $580 by February 16th, after Mt.Gox declared bankruptcy. There was a steady decline from there to $315 at the beginning of 2015.

There was another spike in 2015 when it went from $275 on October 23rd to about $460 on November 4th. It then gradually rose through 2016 to break the $1000 mark in January of 2017.

It was in 2017 that the Bitcoin market went crazy. In October it reached $5,000 and had doubled by November to $10,000. The price of Bitcoins peaked in December at almost $20,000. This was, however, a bubble, and the market soon plummeted to $5000 in march.

Since then, the price has been steadily recovering.

Now that you know how the price varies and fluctuates, you can make an informed estimate on how much 0.01 Bitcoins will cost when you are reading this. Always remember to do a comparative check on several exchanges to accurately determine the price.

Author Profile

Christy Bella: Blogger by Passion | Contributor to many Business Blogs in the United Kingdom | Fascinated to Write Blogs in Business & Startup Niches |