Ciaran Ryan
2 minute read
4 Nov 2020
8:25 am

Measuring wealth by bitcoin

Ciaran Ryan

The price of bitcoin has gone up from R659 to R227,000 over the last nine years, which is a 344-fold increase.

MTI promised investors up to 10% return a month using a computerised trading system, first trading forex, then bitcoin, although the Financial Sector Conduct Authority (FSCA) could not find any evidence of trading success by the company. Picture: GETTY IMAGES NORTH AMERICA/AFP/GEORGE FREY

A R1 million house in SA nine years ago would have cost 1 517 bitcoin. Today, the same house would cost slightly more than six bitcoin, even allowing for house price increases since 2011. Bitcoin was trading at R659 in April 2011, so 6.23 bitcoin – which is what you would pay today for a R1.4 million house – would have cost a little over R4 100 back then. This demonstrates the deflationary effects of bitcoin as a store of value. “In future, people will measure their wealth in bitcoin rather than rands or US dollars,” says Jason Carpenter, CEO of crypto...