Enter the total number of bitcoins purchased and the total cost into the calculator to determine the cost per bitcoin.
Cost Per Bitcoin Formula
The following equation is used to calculate the Cost Per Bitcoin.
CPB = TC / B
- Where CPB is the cost per bitcoin ($/bitcoin)
- TC is the total cost ($)
- #B is the number of bitcoins purchased
To calculate the cost per bitcoin, divide the purchase cost by the number of bitcoins received.
What is the Cost Per Bitcoin?
Definition:
The average cost of a Bitcoin varies with time, just like any other asset. The price of Bitcoin can swing thousands of dollars in an hour.
How to Calculate Cost Per Bitcoin?
Example Problem:
The following example outlines the steps and information needed to calculate the Cost Per Bitcoin.
First, determine the cost of the purchase. In this case, the purchase was $15,000.00.
Next, determine the number of Bitcoins received. For this example, this purchase yields .45671 Bitcoins.
Finally, calculate the cost per bitcoin using the formula above:
CPB = TC / #B
CPB = $15,000.00 / .45671
CPB = $32,843 / Bitcoin
FAQ
What factors can affect the cost per Bitcoin?
The cost per Bitcoin is influenced by several factors including market demand, mining costs, regulatory news, and overall cryptocurrency market trends. Changes in any of these factors can lead to significant fluctuations in the price of Bitcoin.
Is it possible to predict the future cost per Bitcoin?
Predicting the future cost per Bitcoin is extremely challenging due to its volatile nature. While analysts may use historical data and current trends to make predictions, unexpected events or changes in market sentiment can drastically affect the price.
How often does the cost per Bitcoin change?
The cost per Bitcoin can change frequently, sometimes several times within a minute. This is because Bitcoin is traded on various exchanges around the world, and its price is determined by supply and demand dynamics which can shift rapidly.
