<p>If you have <code>0.1</code> BTC and the Bitcoin price is <code>$10,000</code>, it is worth <code>$1000</code>. 
If the Bitcoin price becomes <code>$20,000</code> you will still have <code>0.1 BTC</code> but it will be worth <code>$2000</code>. </p>

CC BY-SA 4.0
2017-11-28T11:23:22.610Z
2018-05-15T06:05:19.383Z
2018-05-15T06:05:19.383Z
Tailer
<p>I'm not sure when you say "If I buy half a bitcoin at $500" whether you mean you paid $500, or whether you mean the price of one bitcoin was $500 and you paid $250 for half a bitcoin.</p>

<p>If you buy half a bitcoin for $500, that means the value of one bitcoin is already $1000. The price can not increase from $1000 to $1000.</p>

<p>If you buy half a bitcoin when the price is $500, you paid $250, which means if the price increases to $1000 then you can sell your half a bitcoin for $500.</p>

<p>I think you should rephrase your question. Or maybe this is fundamentally an arithmetic question, rather than specific to Bitcoin.</p>

CC BY-SA 3.0
2017-11-28T14:01:47.957Z
2017-11-28T14:01:47.957Z
Adam Millerchip
<p>Technically you don't earn anything until you sell it.  So just consider it like any other commodity:</p>

<p>Start off with 0 bitcoin and $500</p>

<blockquote>
  <p>Buy 0.5 bitcoins for $500.</p>
</blockquote>

<p>You now own 0.5 bitcoin, and $0. You've exchanged one item, dollars, for another, bitcoin.</p>

<blockquote>
  <p>Bitcoin price goes up relative to the dollar.</p>
</blockquote>

<p>You now own 0.5 bitcoin, and $0. The amount of bitcoin hasn't changed, merely the value relative to another item.</p>

<blockquote>
  <p>Sell 0.5 bitcoin for $1,000.</p>
</blockquote>

<p>You now own 0 bitcoin, and $1,000. You're trading bitcoin for cash, so the relative value determines what you can sell it for, and since that value has changed you can exchange it for more than originally purchased.  However, the amount of bitcoin hasn't changed.  Just its value.</p>

<p>So while the price of bitcoin fluctuates, it doesn't really mean anything until you trade it for goods or cash.  Once you do that, depending on the sell price, you may have increased or decreased in wealth depending on whether the value of the dollar has also changed.  It's an exchange.</p>

<p>You don't gain or lose bitcoin when its value changes.  It simply becomes more or less valuable, and the amount you hold remains the same.</p>

CC BY-SA 3.0
2017-11-28T19:27:42.330Z
2017-11-28T19:27:42.330Z
Adam Davis
<p>1 kg tomato is $10,000 today.
If you buy 1/2 kg tomato today, you would have paid $5000 today to buy that.</p>

<p>If 1 kg tomato becomes $20,000 tomorrow. What you have in hand is still 1/2 kg of tomato. but you can sell that 1/2 kg of tomato for $10,000.</p>

CC BY-SA 3.0
2017-11-28T14:05:40.963Z
2017-11-28T14:05:40.963Z
Shanthakumar
<p>Bitcoin is like any other investment, you will profit/lose the percentage Bitcoin changes on your capital investment.</p>

<p>If you invest 100$ into Bitcoin and Bitcoin increases 10%, you will earn 10% on the $100.</p>

<p>If you invest $10 into Bitcoin and it drops %50, you will lose %50 of your initial investment. </p>

<p>With there only being 21 million Bitcoin possible to be mined, only a select few will have full bitcoins in the future. </p>

<p>Edit:</p>

<p>The earnings/loses will only occur when you cash out. BTC also has associated fees, so when depositing say $200, the amount of BTC received will not be exactly worth $200.</p>

CC BY-SA 3.0
2017-11-28T17:52:50.660Z
It's important to realize that you only see the profit if you sell your bitcoins.  If you keep them, the price going up and down only notionally affects your investment; look at [this question and the answers](https://bitcoin.stackexchange.com/q/62896/10658) for more details.
Hannah Vernon
CC BY-SA 3.0
2017-11-28T17:58:16.393Z
My apologies I have should have mentioned your investment will grow, that it wouldn't be an immediate return. I will edit it in.
DjangoBlockchain
CC BY-SA 3.0
2017-11-28T17:37:17.717Z
2017-11-28T17:59:13.060Z
2017-11-28T17:59:13.060Z
DjangoBlockchain
<p>If I buy half a bitcoin at $500 and the value of a bitcoin goes up to $1000, does that mean I earn 1 bitcoin or do I have to buy a full bitcoin to get the price increase? How does it work? Please give me some examples.</p>

CC BY-SA 3.0
2017-11-28T18:12:40.727Z
I accidentally flagged this as primarily opinion based, sorry.
Pieter Wuille
<exchange-rate><trade>
Do I have to buy a full bitcoin to get the price increase?
John Jh
# Do I have to buy a full bitcoin to get the price increase?

(Asked by: username_0 on 2017-11-28)

If I buy half a bitcoin at $500 and the value of a bitcoin goes up to $1000, does that mean I earn 1 bitcoin or do I have to buy a full bitcoin to get the price increase? How does it work? Please give me some examples.

**Tags:** exchange-rate, trade

> **Comments:**
> **username_1**: I accidentally flagged this as primarily opinion based, sorry.  

---

## 5 answers

### Answer by username_2 on 2017-11-28. Score: 8

If you have `0.1` BTC and the Bitcoin price is `$10,000`, it is worth `$1000`.
If the Bitcoin price becomes `$20,000` you will still have `0.1 BTC` but it will be worth `$2000`.


---

### Answer by username_3 on 2017-11-28. Score: 2

I'm not sure when you say "If I buy half a bitcoin at $500" whether you mean you paid $500, or whether you mean the price of one bitcoin was $500 and you paid $250 for half a bitcoin.

If you buy half a bitcoin for $500, that means the value of one bitcoin is already $1000. The price can not increase from $1000 to $1000.

If you buy half a bitcoin when the price is $500, you paid $250, which means if the price increases to $1000 then you can sell your half a bitcoin for $500.

I think you should rephrase your question. Or maybe this is fundamentally an arithmetic question, rather than specific to Bitcoin.


---

### Answer by username_4 on 2017-11-28. Score: 1

Technically you don't earn anything until you sell it. So just consider it like any other commodity:

Start off with 0 bitcoin and $500

> Buy 0.5 bitcoins for $500.

You now own 0.5 bitcoin, and $0. You've exchanged one item, dollars, for another, bitcoin.

> Bitcoin price goes up relative to the dollar.

You now own 0.5 bitcoin, and $0. The amount of bitcoin hasn't changed, merely the value relative to another item.

> Sell 0.5 bitcoin for $1,000.

You now own 0 bitcoin, and $1,000. You're trading bitcoin for cash, so the relative value determines what you can sell it for, and since that value has changed you can exchange it for more than originally purchased. However, the amount of bitcoin hasn't changed. Just its value.

So while the price of bitcoin fluctuates, it doesn't really mean anything until you trade it for goods or cash. Once you do that, depending on the sell price, you may have increased or decreased in wealth depending on whether the value of the dollar has also changed. It's an exchange.

You don't gain or lose bitcoin when its value changes. It simply becomes more or less valuable, and the amount you hold remains the same.


---

### Answer by username_5 on 2017-11-28. Score: 1

1 kg tomato is $10,000 today.
If you buy 1/2 kg tomato today, you would have paid $5000 today to buy that.

If 1 kg tomato becomes $20,000 tomorrow. What you have in hand is still 1/2 kg of tomato. but you can sell that 1/2 kg of tomato for $10,000.


---

### Answer by username_6 on 2017-11-28. Score: 1

Bitcoin is like any other investment, you will profit/lose the percentage Bitcoin changes on your capital investment.

If you invest 100$ into Bitcoin and Bitcoin increases 10%, you will earn 10% on the $100.

If you invest $10 into Bitcoin and it drops %50, you will lose %50 of your initial investment.

With there only being 21 million Bitcoin possible to be mined, only a select few will have full bitcoins in the future.

Edit:

The earnings/loses will only occur when you cash out. BTC also has associated fees, so when depositing say $200, the amount of BTC received will not be exactly worth $200.

> **Comments:**
> **username_7**: It's important to realize that you only see the profit if you sell your bitcoins.  If you keep them, the price going up and down only notionally affects your investment; look at [this question and the answers](https://bitcoin.stackexchange.com/q/62896/10658) for more details.  
> **username_6**: My apologies I have should have mentioned your investment will grow, that it wouldn't be an immediate return. I will edit it in.  

---

