Bitcoin (BTC) Profit Calculator
Calculate your investment profits of Bitcoin easily with this free investment calculator.
Bitcoin investment calculator
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How to calculate value of Bitcoin investments?
Find out how much money you have made with our easy-to-use Bitcoin investment calculator! Use this Bitcoin money calculator to find out what is the current value of Bitcoin.
How to use Bitcoin return on investment calculator?
To find out the return on investment, just fill in the value of Bitcoin you purchased, and the date in which you made the transaction. Our Bitcoin return on investment calculator will give you the result!
How to calculate Bitcoin return on investment?
Calculating return on investment is easy! Whether you calculate ROI for Bitcoin or some other cryptocurrency, just use our free tool to make the calculation!
What is Bitcoin?
Bitcoin is a decentralized electronic currency, created in January 2009. It is a decentralized currency that was established in January 2009. Bitcoin promises lower transaction costs than traditional online payment options. It is also operated by a decentralized authority, which is a departure from government-issued currencies.
Bitcoin is a type of cryptography that makes it a popular cryptocurrency. There are no physical bitcoins. The only thing that is kept in Bitcoin's hands is the balance. This public ledger can be accessed by everyone. However, each record remains encrypted. Bitcoin transactions are validated by massive amounts of computing power using a process called mining. No government or bank issues or backs Bitcoin. Additionally, bitcoin is not valuable as a commodity. Despite Bitcoin not being legal tender everywhere, it is still very popular. This has led to hundreds of other cryptocurrencies being launched, collectively called Altcoins. Bitcoin is commonly abbreviated "BTC" when it's traded.
Bitcoin is one of the first digital currencies which uses peer-2-peer technology to allow instant payments. Bitcoin "miners", who are independent entities and companies that own the computing power necessary to process transactions on the Blockchain, are motivated by both rewards (the release or payment in Bitcoin) as well as transaction fees.
These miners could be described as the decentralized authority who enforces the credibility and integrity of Bitcoin networks. New bitcoins can be released to miners at a fixed rate but it is constantly declining. There are 21 million Bitcoins available to be mined. The total number of bitcoins that can still be mined is 21 million.
Bitcoin and other cryptocurrencies operate in a different way from fiat currency. In central banking systems, the currency rate is set at the same rate as the economy's growth. This system is intended for price stability. A decentralized system such as Bitcoin determines the release rate ahead of time and according to an algorithm.
What is Bitcoin mining?
Bitcoin Mining is how Bitcoin is made available for public use. Mining requires solving complicated computational puzzles to find a new. The block is then added to the blockchain.
Bitcoin mining adds transaction records to the network and verifies them. Bitcoin miners get rewarded with some Bitcoin. In 2009, there were 50 new bitcoins as the block reward. In 2009, there were 50 new bitcoins as a block reward.
Bitcoin mining can be done on much different hardware. Some yield better rewards than others. Certain computer chips (called application-specific circuits (ASICs), as well as more sophisticated processing units such graphic processing units or GPUs can earn higher rewards. These advanced mining processors, also called "mining equipment", are often called "mining robots."
One bitcoin can be divisible to eight decimal degrees (100 millionths off one bitcoin), and this unit is called a Satoshi. Bitcoin, if accepted by the miners, could eventually be divisible to further decimal places.
Bitcoin Timeline for early users
Aug. 18, 2008
The domain name Bitcoin.org, Currently, this domain has WhoisGuard Protection. This means the identity of its owner is not available to the public.
Oct. 31, 2008
Satoshi Nagamoto, or a group of people using his name, makes an announcement to the Cryptography Mailing List. metzdowd.com. "I've been hard at work on an electronic cash system that is fully peer-to-peer, and with no trusted third party." The famous white paper "Bitcoin" published by Bitcoin.org and titled "Bitcoin: A Peer to Peer Electronic Cash System" would become the Magna Carta describing how Bitcoin works today.
Jan. 3, 2009
Block 0. is the first Bitcoin block that has been mined. The first Bitcoin block is mined Block 0.
Jan. 8, 2009
The Cryptography Mailing List is pleased to announce the first version of the Bitcoin program.
Jan. 9, 2009
Block 1 is successfully mined, and Bitcoin mining officially begins.
There is no definitive information about who invented Bitcoin. Satoshi Nakamoto refers to the person who created Bitcoin in 2008 and the software that it runs on. Since then, many have claimed to be or been rumored as the real-life individuals behind the pseudonym. But, as of November 2021, Satoshi Nakamoto's true identity (or identities) remains a mystery.
It's tempting to believe that Satoshi Nakamoto is a lonely, quixotic genius who created Bitcoin. But such innovations are not common. All of the major scientific discoveries, regardless of how innovative, were made from research already done.
There are several precursors of Bitcoin. Adam Back's Hashcash was invented in 1997. Nick Szabo created bit Gold. Hal Finney made Reusable Proof of Work. The Bitcoin whitepaper makes references to Hashcash/b-money as also various other works that span many research areas. Many of the other people mentioned above may have played a role in creating Bitcoin, which is perhaps not surprising.
Bitcoin's original inventor may have several reasons to keep their identity secret. Privacy: With Bitcoin becoming a worldwide phenomenon, Satoshi Nagamoto would probably be the subject of much media attention and government scrutiny. Another reason could be that Bitcoin has the potential to disrupt the banking and monetary systems. If Bitcoin were to become widely adopted, it would be able to surpass sovereign fiat currencies. This threat could make it more difficult for governments to pursue legal action against Bitcoin's creator.
Safety is the other reason. Anyone with Bitcoin in their possession could become a criminal target, particularly considering Bitcoin is less like stock and more like money. Private keys to authorize spending could also be printed out and placed under a mattress.
Bitcoin as a means of payment
Bitcoin can be used to pay for products or services. Brick-and–mortar stores may display a sign reading "Bitcoin Acceded Here". The transactions can be made with the necessary hardware terminal, wallet address, or via touchscreen apps and QR codes. This payment option can be added to any online payment method, including credit cards, PayPal, and other options.
How to Buy Bitcoin
Many Bitcoin enthusiasts believe that digital currency will be the future. Many Bitcoin supporters believe it allows for a more efficient, low-cost way to transact across the globe. Bitcoin can be traded for traditional currencies even though it's not supported by any government or central banks. Its exchange rate against the dollar attracts potential buyers and traders who are interested in currency plays. The primary reason for Bitcoin's growth is the fact that it can act as an alternate to national fiat currency and traditional commodities like Gold.
They declared in March 2014 that virtual currencies such as Bitcoin would be taxed property instead of currency. While gains and losses resulting from Bitcoin being held as Capital will result in Capital gains or losses, Bitcoin being held as Inventory will experience normal gains and/or losses. Bitcoin is like any asset. You can either buy low or sell high. There are many ways to earn Bitcoin.
What are the risks of Bitcoin investing?
After Bitcoin's rapid appreciation over the past few years, many speculative investors have taken to Bitcoin. Bitcoin had a value of $7,167.52 as of December 31, 2019. It had also increased more than 300% over the previous year, to $28,984.98. It rose to a record high of $68,000 in November 2021.
Bitcoin is therefore often purchased for its investment potential rather than its ability as a medium to exchange. The lack of a guaranteed value and the digital nature of Bitcoin means that its purchase and use are subject to inherent risks. Many investor alerts have already been issued by the Securities and Exchange Commission and the Financial Industry Regulatory Authority-FINRA, the Consumer Financial Protection Bureau, and others.
While virtual currencies are still a new concept, they don't have the same track record as traditional investments. Bitcoin is becoming less experimental as it gains popularity. But, all digital currencies are still under development after only 10 years. "It is pretty close to the highest-risk and highest-return investment you can make," says Barry Silbert. Digital Currency Group builds and invests in Bitcoin and blockchain companies.
Risks from regulation
The risk of investing money in Bitcoin is too high. Bitcoin is a competitor to government currency. It can be used for illegal activities, underground market transactions, tax evasion, and money laundering. Governments could seek to regulate, restrict or ban the sale and use of Bitcoin. Others are working on different rules.
In 2015, the New York State Department of Financial Services enacted regulations that required Bitcoin companies to keep track of the identity of customers, have compliance officers and maintain capital reserves.
It is unclear if Bitcoin and other virtual currencies are subject to uniform regulations. This raises questions about their viability, liquidity, and universality.
Most people who own and use Bitcoin did not obtain their tokens via mining operations. They instead buy and sell Bitcoin and digital currencies on any of the most popular online markets known as Bitcoin Exchanges or cryptocurrency Exchanges.
Bitcoin exchanges, which are completely digital, can be at risk from hackers and malware. An attacker could steal the private encryption key of a Bitcoin owner and gain access to their computer hard drive. The only way to prevent this is to store your Bitcoin on a computer not connected to the internet. You can also use a paper wallet to print the Bitcoin addresses and private keys and then not keep them on a machine.
Hackers can also target Bitcoin Exchanges, getting access to thousands of accounts and digital wallets where Bitcoin is stored. Mt. Gox in Japan was closed down by hackers after Bitcoin worth millions of dollars had been stolen.
This is because Bitcoin transactions are irreversible and permanent. It's the same as dealing with money: Bitcoin transactions cannot be reversed unless the recipient refunds them. It does not include a payment processor, third party, or third party. This means that there is no protection or recourse if there is an issue.
Some investments are covered by the Securities Investor Protection Corporation. You can ensure your bank accounts through the Federal Deposit Insurance Corporation up to a specified amount depending on the jurisdiction.
Bitcoin accounts and Bitcoin exchanges are not insured under any federal or government program. SFOX, a leading trading platform, and prime dealer announced in 2019 it would be able to offer FDIC Insurance to Bitcoin investors. But only for transactions involving cash.
While Bitcoin uses private encryption to verify owners and register transactions to ensure security, fraudsters or scammers could attempt to sell fake Bitcoin. One example is the SEC's July 2013 legal action against a Bitcoin-related Ponzi scheme operator. There have been cases of Bitcoin price manipulation, which is another type of fraud.
Bitcoin's values can fluctuate like any investment. Over its short life, the currency's value has seen dramatic swings in prices. The currency is highly sensitive to newsworthy developments due to high volumes of buying and selling on the exchanges. According to the CFPB in 2013, Bitcoin prices fell by 61% in a single trading day. In 2014, it was as high as 80%.
These digital units could lose their value if there are fewer people who accept Bitcoin as their currency. The speculation was that Bitcoin's "Bitcoin bubble", which occurred when its price plummeted from its high in the cryptocurrency rush of late 2017/early 2018, led to fears that it would burst.
There is plenty to choose from, and while Bitcoin has a substantial lead over other digital currencies due to its brand recognition and money venture capital money investment, a technological breakthrough is always possible in the form of a better virtual coin.
Splits in Cryptocurrency community
Many instances have occurred in the years that Bitcoin was launched where there were disagreements between miners and developers. These cases led to large-scale splits within the cryptocurrency industry. Some cases have seen groups of Bitcoin users or miners change the protocol of Bitcoin.
This is also known as "forking," which results in the creation of a new Bitcoin type with a new name. This split can also be called a "hard fork" in which the new coin shares transaction data with Bitcoin up to a decisive point, at that point a new token may be created. Bitcoin Cash (created in August 2017), Bitcoin Gold(created October 2017), and Bitcoin SV(created November 2018).
A soft fork is any protocol change that is compatible with the system's rules. Bitcoin soft forks include functionalities such as segregated witnesses (SegWit).
Why Bitcoin is so valuable?
Bitcoin's prices have risen exponentially in a little over ten years, from $1 in 2011 to $68,000 in November 2021. Its price is determined by several factors such as its relative scarcity, market demand, and marginal costs of production. Its market value, which is $1.11 trillion, comes from many sources including its relative scarcity and market demand.
Is Bitcoin a Scam?
Bitcoin can be touched, even though it is virtual. Bitcoin has been around for over a decade, and the system has proven to have high reliability. The open-source software that runs Bitcoin can be downloaded by anyone to check for bugs and other evidence of evil intent. While fraudsters could attempt to defraud people of their Bitcoin or hack sites, such as cryptocurrency exchanges, these are human flaws or third-party software and not Bitcoin.
How Many Bitcoins Exist?
The highest number of bitcoins ever produced is 21,000,000. The last bitcoin will be mined sometime around 2140. This is the maximum number of bitcoins ever produced.
Should I Capitalize Bitcoin's "B"?
The convention is to use a capital b when discussing the Bitcoin network or protocol. For individual bitcoins that are a unit in value, you can use a small b (for example, I sent two Bitcoins).
Where can I buy Bitcoins?
There are many online platforms that allow you purchase Bitcoin. A number of bitcoin ATMs --internet-connected kiosks which allow you to buy Bitcoins with cash and credit cards--are also available. A friend may have bitcoins and be willing to sell them directly to you.
Disclaimer! None of the authors, contributors, administrators, vandals, or anyone else connected with PureCalculators, in any way whatsoever, can be responsible for your use of the information contained in or linked from this article.
Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.
Bitcoin (BTC) Profit Calculator English
Published: Fri Feb 18 2022
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