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One millibitcoin (mBTC) is equal to around 37 CAD (50 mBTC to CAD is around 1,850 as of this writing). For the past month mBTC’s value hovered around 36 to 50 CAD. It’s been a downward trend especially when we look back at November 2021 when mBTC reached a peak of 84 CAD.
Here’s a glance of recent trends related to mBTC:
We can see there that the millibitcoin’s value today still exceeds that of more than four years ago. Comparing the mBTC’s value in the early years to today’s means that there has been a net increase despite the recent downtrends.
Coinberry is a great place to buy and trade BTC, but understanding the value of Bitcoin is easier when converted to the smaller mBTC unit. Still, To better understand mBTC’s value trajectory, we’ll need to go over its history and specifics, which should also shed light on why it’s the preferred unit of bitcoin by many.
A millibitcoin (mBTC) is 0.001 or a thousandth of a bitcoin. In other words:
1 BTC = 1,000 mBTC
It has become a popular unit of bitcoin because of mBTC’s easy conversion to Canadian dollar. Instead of saying 1 BTC is equal to 37,000 CAD, we can just say 1 mBTC is 37 CAD.
This is a bit similar to the Canadian dollar currency system where we use cents (1 CAD = 100 cents). Instead of saying 1,000 cents, we can just say or write 10 CAD. Whether on paper or on screen, the smaller number becomes more manageable and easier to imagine and calculate.
Aside from the millibitcoin, there are other units of BTC such as:
The smallest unit of bitcoin is satoshi (named after Satoshi Nakamoto, said to be the one who developed bitcoin and wrote the BTC white paper).
1 bitcoin = 100,000,000 satoshi
It’s easier to mentally process numbers that are in the tens or hundreds rather than thousands or numbers with a few decimal points. It’s especially the case when buying everyday items such as food or just browsing in the grocery store.
This is similar to using millibitcoin in everyday transactions and conversations about crypto. Although there are other units such as the satoshi or mega bitcoin, mBTC is still the preferred unit because of its more manageable numbers especially when we convert it to the Canadian dollar and other currencies where 1 BTC amounts to thousands of a local currency.
In other countries though, the use of millibitcoin might be impractical. For example,
1 BTC = 3,700,000 Japanese Yen (JPY)
1 mBTC = 3,700 JPY
The number 3,700 is still easy to imagine and manage. However, it’s not as practical to use compared to when converting mBTC to Canadian dollar (37 CAD).
Whether BTC or mBTC, it’s still the top cryptocurrency because it’s the pioneer. Bitcoin has gained a first-mover advantage where hundreds of thousands or millions of people already used or bought bitcoin before the other cryptocurrencies came into the scene.
In addition, those early adopters have a financial incentive to promote the use of bitcoin. Because of bitcoin’s scarcity (limited to a quantity of 21 million) and diminishing supply, the demand for crypto increases. As more investors try to get their hands on bitcoin, BTC’s price can continue to rise. The crypto’s scarcity makes its price follow the basic supply-demand curve (low supply and high demand result in high prices).
Aside from BTC’s scarcity and being the first, bitcoins are still popular because of its active ecosystem and upcoming upgrades and developments such as Taproot. These upgrades will help make transactions faster and easier through batching multiple signatures and transactions. With this batching and greater speed, scaling the number of transactions through the bitcoin network becomes more attainable (scaling is a major issue in the use of BTC and other cryptocurrencies).
Another pattern relates to the movement of other cryptocurrencies. For example, as bitcoin’s price rises, there comes a point when investors will favor other cryptos such as Ether. Perhaps bitcoin became too expensive or investors are now starting to think that Bitcoin’s price will go down shortly. As a result, they will look for other investments such as other cryptocurrencies or the stock market.
As for the stock market, many investors have observed that there could be a correlation between its movement and that of the cryptocurrencies. For example, if there’s an overall upward trend in the stock market, especially with the tech stocks, the same also happens in the prices of bitcoin, ether, and other cryptos. Note that this is a correlation which means there could be a third player that affects both such as the general economy or a recent government regulation.
The exact value of any bitcoin holding will depend on a number of different factors, but it’s still and always has been a highly volatile investment. If you’re starting out with buying and selling crypto, it’s always good to start with small amounts of money so you can first explore before committing huge amounts.
If you’re a seasoned investor, you might want to try looking for other indicators and patterns that can tell you whether bitcoin will go down or up in the next few days or weeks. Successfully making crypto investments, more often than not, is about playing the long game and being patient with your holdings.
So if you’re looking to get into cryptocurrency trading and want to capitalize on these trends, sign up with Coinberry today - our platform makes it easy and accessible for anyone to get started.
Coinberry is a Canadian digital asset trading platform that provides users the easiest and safest way to buy and sell Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Stellar in Canada. Assets held by Coinberry are not eligible for Canadian Investor Protection Fund coverage.
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