No need to have $50 or $100 per month since I believe that every little helps! Once I had the idea of running a startup where I could give a debit card with an automated satoshi rounding-up that could help people stacking sats with every purchase they make. Now I think Fold App does exactly that.
Do you know any other service like that?
Topic: 2021-08-15 Nasdaq - Profiting Big From Bitcoin DCA (Read 124 times)
I guess a question would be: If you have the cash now, is it smarter to do it all at once or DCA over a period of time? Certainly if you don't have the fiat now, DCA is smart. If you do have it now and the alternative is to invest it over 4 years (roughly the time period in the article), I think the better advice is to just buy it all now or as there are dips and then don't trade it.
As for $1 million, if enough people are buying then it could easily happen. 1 to 3 more orders of magnitude is certainly possible until there is some sort of fiat equilibrium reached.
As for $1 million, if enough people are buying then it could easily happen. 1 to 3 more orders of magnitude is certainly possible until there is some sort of fiat equilibrium reached.
This actually made me think now that there are several kinds of DCA:
1. Buying a fixed fiat amount at regular intervals, which I suppose is the true DCA strategy of enforced savings, since it averages out the dollar buys.
2. Buying a variable fiat amount at fixed intervals -- e.g. Whatever is left aside every X weeks is put into buying BTC. This is my DCA, albeit, in reverse: I earn in crypto (BTC mainly), and sell what I need to pay bills and expenses a month ahead, and whatever's left, I send to my wallet.
3. Buying at a variable interval at a fiat threshold amount, which is probably what a lot of people do in smaller economies. That is, whenever they're able to save $100, then they buy Bitcoin. This I say because it's not always possible for everyone in all economies to save $50 or $100 in a month or two. And I know already some people saving up like this to buy BTC regardless of price, but whenever they have $100. The threshold isn't really arbitrary either, but you pay dearly in commissions and fees when buying below certain limits.
I see what you mean and I share a similar view but in recent years, discussing a lot bitcoin with nocoiners I realized that explaining them the old good DCA strategy paid off. I believe that 2 out of 3 people have enjoyed the strategy basics and applied them relentlessly.
And considering that I started discussing this in 2014, many of the people I have met should have been able to save a fortune.
Now I see why they do not call me anymore.
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After running the numbers it’s clear as day that dollar-cost averaging into bitcoin over time is a very profitable strategy!
I guess a question would be: If you have the cash now, is it smarter to do it all at once or DCA over a period of time? Certainly if you don't have the fiat now, DCA is smart. If you do have it now and the alternative is to invest it over 4 years (roughly the time period in the article), I think the better advice is to just buy it all now or as there are dips and then don't trade it.
As for $1 million, if enough people are buying then it could easily happen. 1 to 3 more orders of magnitude is certainly possible until there is some sort of fiat equilibrium reached.
If you go for DCA then your prices will be x+1, x-1, x2 etc.
I think it could have been good to go all-in, maybe, 5-6 years ago. Right now I think DCA is the best way to go, both for oldtimers and newcomers.
My own view is that if you have the cash, maybe DCA over 6 months, otherwise just put it all in. If you don't have the cash, just buy as you can.
I would say that "all in" was a good bet at any time before Feb 2021 or between May 2021 and now. In the long run even those who bought in Nov/Dec 2017 are way ahead of other assets. Whether that will be the case now is an open question, but EVEN at the times it was at an "all time high" one has done great by going all in. (e.g. at $1, $30, $100, $1000, $2000, $5000, $20000 etc).
:-)
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After running the numbers it’s clear as day that dollar-cost averaging into bitcoin over time is a very profitable strategy!
I guess a question would be: If you have the cash now, is it smarter to do it all at once or DCA over a period of time? Certainly if you don't have the fiat now, DCA is smart. If you do have it now and the alternative is to invest it over 4 years (roughly the time period in the article), I think the better advice is to just buy it all now or as there are dips and then don't trade it.
As for $1 million, if enough people are buying then it could easily happen. 1 to 3 more orders of magnitude is certainly possible until there is some sort of fiat equilibrium reached.
If you go for DCA then your prices will be x+1, x-1, x2 etc.
I think it could have been good to go all-in, maybe, 5-6 years ago. Right now I think DCA is the best way to go, both for oldtimers and newcomers.
Quote
After running the numbers it’s clear as day that dollar-cost averaging into bitcoin over time is a very profitable strategy!
I guess a question would be: If you have the cash now, is it smarter to do it all at once or DCA over a period of time? Certainly if you don't have the fiat now, DCA is smart. If you do have it now and the alternative is to invest it over 4 years (roughly the time period in the article), I think the better advice is to just buy it all now or as there are dips and then don't trade it.
As for $1 million, if enough people are buying then it could easily happen. 1 to 3 more orders of magnitude is certainly possible until there is some sort of fiat equilibrium reached.
The purposes of the DCA are essentially twofold:
With regard to the first point, intuitively, this strategy allows the periodic accumulation of small sums of money, through instruments with a certain annual yield, in such a way as to find oneself in the long term with a certain capital that can be used, for example, as a supplementary pension.
With respect to the reduction of risk, however, the DCA allows you to minimize it because over time you will find yourself buying both in favorable and unfavorable periods, thus obtaining a relatively constant average price.
This will not allow you to obtain stratospheric returns but at the same time will greatly reduce investment risks.
And if what we have said above holds true, combining the fact that the lesser coins available the higher the price, we might indeed see a million dollar per coin.
- progressive accumulation of savings;
- reduction of investment risk.
With regard to the first point, intuitively, this strategy allows the periodic accumulation of small sums of money, through instruments with a certain annual yield, in such a way as to find oneself in the long term with a certain capital that can be used, for example, as a supplementary pension.
With respect to the reduction of risk, however, the DCA allows you to minimize it because over time you will find yourself buying both in favorable and unfavorable periods, thus obtaining a relatively constant average price.
This will not allow you to obtain stratospheric returns but at the same time will greatly reduce investment risks.
And if what we have said above holds true, combining the fact that the lesser coins available the higher the price, we might indeed see a million dollar per coin.
I wish instead of comparing the DCA results for both BTCitcoin and gold, it would've compared the BTCitcoin DCA results with someone that invested the exact same amount [with near-perfect results] in trading, but regardless of that, it was still quite interesting.
- Having said that, I have a feeling most of the current forum users, will not be around [perhaps around 2140] to witness it [I hope I'm wrong].
I do not know if the building crowd of DCA lovers will bring bitcoin to one million
I don't want to speculate, but I think most users would agree that's bound to happen at some point.- Having said that, I have a feeling most of the current forum users, will not be around [perhaps around 2140] to witness it [I hope I'm wrong].
If there are a majority of players, both retail and institutional, who do DCA instead of trading, they will still put more pressure on the demand side, thus driving the price up. Let's hope that the idea catches on and especially the retail players, who are the most likely to get scared and sell at the slightest FUD, switch to DCA. Although there will always be people who trade. DCA performance has been famous for years for index funds and there are still a lot of retail investors trading (and losing money for the most part over the long term).
I do not know if the building crowd of DCA lovers will bring bitcoin to one million but I know for sure that this peculiar category will keep on buying no matter what.
They most probably will. Keep in mind that one of the "DCA lovers" around there is MicroStrategy. And more institutional investors will probably do the same/follow the lead.
And with this in mind "run the numbers again"
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After running the numbers it’s clear as day that dollar-cost averaging into bitcoin over time is a very profitable strategy!
Dollar-cost averaging (DCA) is defined as purchasing at determined intervals regardless of price, and has proven to be one of the most effective and safest ways to accumulate bitcoin. It allows the individual to mitigate bitcoin’s wild volatility, and have peace of mind in their saving strategy.
DCA is also not only good for your net worth, but it’s also good for Bitcoin. As Hass McCook explains in “How The DCA Army Will Drive A $1 Million Bitcoin Price,” Bitcoin benefits in many ways if there are enough people doing auto-DCA, thus casually eating away at the total bitcoin supply.
Dollar-cost averaging (DCA) is defined as purchasing at determined intervals regardless of price, and has proven to be one of the most effective and safest ways to accumulate bitcoin. It allows the individual to mitigate bitcoin’s wild volatility, and have peace of mind in their saving strategy.
DCA is also not only good for your net worth, but it’s also good for Bitcoin. As Hass McCook explains in “How The DCA Army Will Drive A $1 Million Bitcoin Price,” Bitcoin benefits in many ways if there are enough people doing auto-DCA, thus casually eating away at the total bitcoin supply.
https://www.nasdaq.com/articles/profiting-big-from-bitcoin-dca-2021-08-15
Being a fan of the easiest way of investing in almost anything you can imagine, I am quite happy to finally read these pieces on a mainstream media outlet. I do not know if the building crowd of DCA lovers will bring bitcoin to one million but I know for sure that this peculiar category will keep on buying no matter what.
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