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This fun website shows us the power of dollar cost averaging. If you bought at 20k in 2017 you have tripled your money. If you dollar cost averaged until now (using the same amount of money) you’d be up 630% – more than seven times your principal. $100 a week is now $126k (2.2 btc). Gold is 18%

This fun website shows us the power of dollar cost averaging. If you bought at 20k in 2017 you have tripled your money. If you dollar cost averaged until now (using the same amount of money) you’d be up 630% – more than seven times your principal. $100 a week is now $126k (2.2 btc). Gold is 18%



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17 Comments

  1. I always enjoy figuring out how much I’d have if I had put in 20k when I first heard about Bitcoin in 2012.

    I find it really beneficial for my self esteem and general mental health /s

  2. And if you bought and held at $3300 in 2018 with no DCA you’d be up almost 1,700% and have nearly $360,000. You’re just cherry picking numbers that support your point.

    Not saying DCA is a bad strategy, but you can select any range of time and amounts that do or don’t support your point.

  3. Ok but you cherry picked that 20k/2017 data point. That was the all time high for years before and after. (I’m not trying to bash the DCA practice, just wondering why you did that)

  4. What about those high transaction fees for such low investments? On Coinbase I think it would every week cost about 2€ for a 100€ investment which accumulates over the span of a couple years

  5. Many years ago (or so) my brother who works in IT told be about BTC and said that if I invested $1000 I could get over 200 BTC and that I’d be rich one day. I laughed, he laughed. Neither of us did it.

    He did mine about 10 coins and cashed out when he found his wallet in 2017 at $12K/coin, on my advice. He thought I was a genius when it tanked a few months later. Oh well, I guess that goes to show that you shouldn’t listen to what I say.

  6. This only looks so good because the entry period is cherry picked to be badly timed. Buying the exact top of the entire bull run is quite unlikely. If the same person had thrown their money in a year earlier, DCA would look like shit by comparison.

  7. I agree that the underlying DCA strategy is great. But starting from the previous ATH as a base value is intrinsically flawed.

    For consideration, if you invested $1200 exactly a year ago, you’d have $11k that. If you DCA-ed, you’d have 6k. Still great, but highly dependent on the bull/bear cycle.

    ​

    EDIT: I see now many other people commented on this exact thing. I do think it bears repeating. DCA is still a great strategy for people that don’t want to spend months trying to figure out the exact time to enter the market or cannot take the risks that such a volatile asset brings. And DCA still gives way more ROI that conservative investing strategies (stocks/bonds, index funds etc).

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