Surely, we would have different answers if we asked this question to an American or a European. But things might change a little when it comes to Turks’ perspective. Let me tell you why:
When we take a look at the figures of the past 5 years, we can see that Gold price per gram climbed from 98 TRY to 306 TRY, which mean it has risen three-fold over the last few years. Gold price had stood around 99 TRY when, in November 2015, Bitcoin was first traded in markets. Well, it amounts to a more or less same price and same profit.
When Bitcoin was first traded in markets on November 20, 2015, its value was equal only to 925 TRY but today it is being traded at almost 55.000 TRY. It increased 59-fold over the past 5 years. Although it scared the investors from time to time with its unpredictably fluctuating nature, but it’s a commodity miracle indeed, especially considering it’s denominated in TRY.
Seeing such rapid ascent in such a short time, people can get illusions of money and power. But let this be known that more than half of this rise has been caused by the rapid upward trend in USD/TRY exchange rate. When considered from the dollar’s perspective, introduced to markets with a value of 327 USD on November 2015, Bitcoin is being traded at around 9300 USD today. In short, Bitcoin has risen 29.5-fold as a dollar-denominated currency, and 59-fold as a TRY-denominated currency. When evaluating TRY-denominated profit of some financial instruments, it is advisable to take its exchange rate to USD into account as well.
Of course, before making investment decisions, people should decide on a financial investment thy wish to make profit on. The deposit account of a person who sold their dollars and bought Bitcoin, and the account of another who sold his deposit money to buy Bitcoin are two completely different things. But today, Dollar is considered an international medium of exchange rather than serving as American currency. So, a very simple calculation called “How much dollar I used to have? Now how much dollar do I have?” may help you find out how much profit you made or how much loss you suffered.
“Patience is bitter, but its fruit is sweet…”
Many cryptocurrency trading that was first denominated in US Dollar helped their investors make a lot of money no matter how bumpy or rough the ride was.
But, before crowning Bitcoin as the champion of cryptocurrencies, with all my integrity, I’d like to talk about another precious metal that was soaring on the global commodities markets lately.
But the price of Palladium has been soaring on global commodities market since the beginning of 2016 when it had stood around 500 US dollars per ounce, but today it’s worth 2334 US dollars per ounce. An enormous amount of profit indeed, except for Bitcoin of course. The fact that the palladium is the preferred metal in the exhaust systems of hybrid vehicles makes it more precious even than Gold today. Palladium is also used in as a precious metal in jewellery, some dental fillings and crowns; luxury watch-making, blood sugar test strips, aircraft spark plugs, surgical instruments, and electrical contacts. Primarily found in South Africa, Canada and the U.S., silvery-white metal was discovered in the early 19th century. Since then, it has been frequently used in various industries. Its dollar-denominated price has risen 5-fold over the last 5 years, which is equal to a 10-fold profit in Turkish lira. A huge amount of profit indeed…
It can clearly be seen that even the most conventional and the most profitable type of trading cannot compete with Bitcoin.