Why Unit Points vs Percentage Points and how to use them properly [Investing]

I hear a lot of people say that an asset such as Bitcoin is too expensive for them to buy enough of to make it worth while. This is flawed thinking, especially in today's markets where you can buy fractions of an asset. Profit is not dictated by the amount of dollars or units an asset goes up by, but rather how many percentage points it goes up by.

For example lets take a look at 2 assets Bitcoin and an imaginary asset we will call XYZ (think of it as a stock or coin):

July 18, 2016 - July 18, 2017

Bitcoin:  Open $600  Close $2,352

XYZ:  Open $6,000  Close $60,000

One year ago we had $100 to invest and split it equally into Bitcoin and XYZ:

Our Holdings

Bitcoin:  0.08333333  Open Value: $50  Close Value: $195.99  ROI: 391.98 %

    XYZ:  0.00833333  Open Value: $50  Close Value: $499.99  ROI: 999.98 %

Although we were only able to by one tenth (10%) the units in XYZ than we could in Bitcoin, we made more than twice as much over the same time period! The clear winner here is XYZ even though you can't afford as many units.

Summary

When buying into something it is more important to look at the expected percentage point changes and not focus on the unit pricing as much. Just because an asset is relatively expensive does not mean it should be over looked. Bitcoin has been one of these assets that shows even though it seems expensive, long term it is actually cheap!

Thanks for reading hope this helps a little!