Why is BTC/USD the Most Popular Crypto-to-Fiat Trading Pair?
2022-02-18 18:02:41
How much is 1 Bitcoin in US dollars
A trading pair is a function representing two currencies that can be traded for each other on an exchange. For example, when you buy Bitcoin using US dollars, the trading pair is BTC/USD. It can be essentially quantified as the price ratio of two currencies. Put simply, it is the amount of USD required to buy 1 BTC.
Understanding trading pairs is necessary primarily for buying certain cryptocurrencies, but before that, it is important to understand base currencies. A base currency is a way to denote an agreed-upon value of different assets. In the BTC/USD pair, Bitcoin is the base currency, while the US dollar is the quoted currency. When, for instance, the price of the BTC/USD pair is $10,000, it means that one would require 10,000 US dollars to acquire 1 Bitcoin.
The History of BTC/USD Trading Pair
The BTC/USD pairs one of the most popular crypto-to-fiat currency pairs in the market with its unique properties. Bitcoin is known as the most prominent and widely accepted digital coin, and the US dollar is the world's primary reserve currency and the most traded currency in the international foreign exchange market. Thanks to its popularity, investors are able to get access to it in most major crypto exchanges including Binance, Coinbase and Gate.io.
When the first block was mined at the beginning of 2009 by Satoshi Nakamoto, 50 BTC entered circulation at a price of $0.00. On October 12, 2009, the first BTC to USD transaction was made and 5,050 Bitcoins were purchased for 5 dollars and 2 cents. This marked the first rationalization of cryptocurrencies and revolutionized the perception of BTC in the eyes of numerous investors.
Therefore, Bitcoin didn’t wait long for a dedicated exchange to spring up with the first cryptocurrency exchange going live in March 2010 called Bitcoinmarket.com, a now defunct platform. However, at that time, there was little common consensus on how much a Bitcoin was worth. Most price charts only go back as far as summer 2010, at which point 1 BTC was trading for around $0.05, though a single Bitcoin was priced at around $0.003 when Bitcoinmarket.com officially launched. In other words, you can pay 1 Dollar to get 333 Bitcoins.
On February 9, 2011, Bitcoin price reached $1.00, achieving parity with the US dollar for the first time. The milestone encouraged new investors into the market, and over the next ten years, Bitcoin price continued to rise – peaking at $69,000 on November 10, 2021. Bitcoin price live on Gate.io shows that, as of writing, 1 BTC is worth 40728.97 USD.
BTC to USD trading is well-known to be very volatile as it can be influenced by a number of factors, including news about either of the currencies. The USD is directly affected by the US financial and political situation, news and events. A rate hike would pressure the price lower, while any rate cut would provide tailwinds for the pair. As Bitcoin is not tied to any particular country, the geopolitical and economic factors have little to no bearing on it. Instead, any regulation that may cause friction with the idea of decentralization and blockchain will see investors express pessimism in the value of BTC/USD.
A trading pair is a function representing two currencies that can be traded for each other on an exchange. For example, when you buy Bitcoin using US dollars, the trading pair is BTC/USD. It can be essentially quantified as the price ratio of two currencies. Put simply, it is the amount of USD required to buy 1 BTC.
Understanding trading pairs is necessary primarily for buying certain cryptocurrencies, but before that, it is important to understand base currencies. A base currency is a way to denote an agreed-upon value of different assets. In the BTC/USD pair, Bitcoin is the base currency, while the US dollar is the quoted currency. When, for instance, the price of the BTC/USD pair is $10,000, it means that one would require 10,000 US dollars to acquire 1 Bitcoin.
The History of BTC/USD Trading Pair
The BTC/USD pairs one of the most popular crypto-to-fiat currency pairs in the market with its unique properties. Bitcoin is known as the most prominent and widely accepted digital coin, and the US dollar is the world's primary reserve currency and the most traded currency in the international foreign exchange market. Thanks to its popularity, investors are able to get access to it in most major crypto exchanges including Binance, Coinbase and Gate.io.
When the first block was mined at the beginning of 2009 by Satoshi Nakamoto, 50 BTC entered circulation at a price of $0.00. On October 12, 2009, the first BTC to USD transaction was made and 5,050 Bitcoins were purchased for 5 dollars and 2 cents. This marked the first rationalization of cryptocurrencies and revolutionized the perception of BTC in the eyes of numerous investors.
Therefore, Bitcoin didn’t wait long for a dedicated exchange to spring up with the first cryptocurrency exchange going live in March 2010 called Bitcoinmarket.com, a now defunct platform. However, at that time, there was little common consensus on how much a Bitcoin was worth. Most price charts only go back as far as summer 2010, at which point 1 BTC was trading for around $0.05, though a single Bitcoin was priced at around $0.003 when Bitcoinmarket.com officially launched. In other words, you can pay 1 Dollar to get 333 Bitcoins.
On February 9, 2011, Bitcoin price reached $1.00, achieving parity with the US dollar for the first time. The milestone encouraged new investors into the market, and over the next ten years, Bitcoin price continued to rise – peaking at $69,000 on November 10, 2021. Bitcoin price live on Gate.io shows that, as of writing, 1 BTC is worth 40728.97 USD.
BTC to USD trading is well-known to be very volatile as it can be influenced by a number of factors, including news about either of the currencies. The USD is directly affected by the US financial and political situation, news and events. A rate hike would pressure the price lower, while any rate cut would provide tailwinds for the pair. As Bitcoin is not tied to any particular country, the geopolitical and economic factors have little to no bearing on it. Instead, any regulation that may cause friction with the idea of decentralization and blockchain will see investors express pessimism in the value of BTC/USD.
Previous article:
Is it Possible for Shiba Inu Coin Price to Hit $0.001 in 2022?
Popular News
