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What is the total return calculation for Bitcoin in the past year?

avatarSnedker MadsenDec 26, 2021 · 3 years ago3 answers

Can you explain how to calculate the total return for Bitcoin over the past year? I'm interested in understanding the formula and the factors that contribute to the calculation.

What is the total return calculation for Bitcoin in the past year?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Sure! To calculate the total return for Bitcoin over the past year, you need to consider both the price appreciation and any dividends or interest earned. The formula is: Total Return = (Ending Value - Beginning Value + Dividends or Interest) / Beginning Value * 100. This will give you the total return as a percentage. Keep in mind that the total return can vary depending on the time frame you choose and the specific data sources you use for pricing and dividend/interest information. It's also important to note that past performance is not indicative of future results.
  • avatarDec 26, 2021 · 3 years ago
    Calculating the total return for Bitcoin in the past year is quite straightforward. You simply need to find the difference between the ending value and the beginning value, add any dividends or interest earned, and then divide that sum by the beginning value. Finally, multiply the result by 100 to get the total return as a percentage. It's worth noting that the total return calculation does not take into account transaction fees or taxes. So, make sure to consider those factors separately if you need a more accurate picture of your actual returns.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to calculating the total return for Bitcoin over the past year, there are a few things to keep in mind. First, you'll need to determine the beginning value and the ending value of your investment. This can be done by looking at the price of Bitcoin at the start and end of the year. Next, you'll want to consider any dividends or interest earned during that time period. Finally, you can use the formula mentioned earlier to calculate the total return. Remember that this calculation is based on historical data and may not accurately predict future returns. It's always a good idea to consult with a financial advisor or do further research before making any investment decisions.