Reaching the value of R$ 100,000 here is not only the merit of Bitcoin, but also denotes the great devaluation of the real against the dollar.
We are almost arriving in December and Bitcoin has just reached a legendary price, imitating the historical high that happened in 2017 around the same period. While the Bitcoin is heading for its highest value in history, being traded for $ 18,664, here in Brazil the price reached a very important mark of R$ 100,000.
The situation of digital currency here in Brazil is intriguing and is repeated in different countries. For example, those who bought 1 Bitcoin (in dollars) in the ATH of 2017 are still at a loss, lacking about $ 800 dollars to reach the value of the time.
But those who bought the Bitcoin in the high history of 2017 in Brazil in reais (R$ 65,000) are making a profit of almost R$ 40,000. Even those who bought fractions in that period today have a profit of over 50%. This means that all holders of Bitcoin in Brazil since 2017 are in profit, regardless of when they bought.
Those who bought during the 80% drop in December 2018, with the currency at R$ 13 thousand, the profit is over 669%. The situation is not only in Brazil, with the currency reaching historical value also in Russia, Turkey, Argentina, Angola, Sudan, Venezuela, Zambia and heading for records elsewhere.
Bitcoin Deflation vs. Fiduciary Inflation
Okay, this important price level achieved against the real demonstrates two important factors: First, how strong the Bitcoin is and investors are interested in the asset, and second, how much inflation is affecting the fiduciary currencies.
Reaching the value of R$ 100,000 here is not only to the credit of the Bitcoin, but also denotes the large devaluation of the real against the dollar. When the Bitcoin was at $20,000, the price of the dollar in Brazil was R$3.20. Three years later the real was worth R$ 5.70.
With this, it is undeniable that the Bitcoin gains more and more strength from the theory that it can be used as a reserve of value, just like the dollar and other precious metals. This interest in Bitcoin as a way to protect your capital is what is attracting many investors and which, in theory, can keep the price of currency rising.