Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 24/12/2023, 16:49:57 UTC
 
I was doing a small research that how much effective DCA will be on https://dcabtc.com/ and comes up with following data. If you doing DCA 100 dollar per week then here are results:

What I conclude from above table is that even DCA may not be effective over a small period of time but over a longer duration like 4 years or more.
Your numbers are wrong and with that dcabtc.com website you need to manually calculate your level of profits, so let me show you with the 3 year period.

So yes, you are correct that $100 per week would result in right around $15,700 invested over three years, and that would also result in about 0.5518 BTC (which today has a market value of about $24,280 (which is an average cost per BTC of about $28,452 ($15,700/0.5518) and a profit amount of about 55% ($24,280/$15,700)).  Your table shows losses of nearly 9%.. which surely is not correct, and perhaps some error of the site because the amount accumulated would end up being 0.5518 over 3 years which is truly profitable by 55% and not a 9% loss. You can recalculate for each of the time periods and come up with differing results, but the trend is generally that every period is currently up, and the longer that you have been in then probably the greater your actual profits, even though the percentages might vary along the way, and I don't necessarily feel like going through each of those calculations myself to show the correct results, but I do use that DCAbtc.com website on a regular basis, and I have found that I have to perform some of the calculations manually in order to get the correct results.  There are some other DCA calculating websites out there too.. such as https://dcacryptocalculator.com/bitcoin  and https://costavg.com/
https://dcacryptocalculator.com/bitcoin and https://costavg.com/ are giving similar results if we want to calculate results of 100 dollars per week for last three years. ROI for last 3 years from these sites is 43%.
While same data on https://dcabtc.com/ shows a decrease in 20% of total investment. So better follow https://dcacryptocalculator.com/bitcoin and https://costavg.com/ for DCA calculations.
Thanks for giving info about these two sites. Will do some more research on DCA on these two sites and will posts results in a day or two.

I think that my point is to make sure that you do your own calculations, and sure there could be some reliance that the amount invested and the amount of BTC accumulated during that period of time would be in the ballpark of being correct, but once you have those numbers, you have enough information to figure out how much you would have had invested at the chosen rate versus how much your BTC would currently be worth, and so at least currently we might be closer to having similar numbers, even though probably you could go through your original list and then make an update for each of the amounts, which would likely end up changing some aspects of your theory about DCA buying into BTC, which sometimes the results can be quite ambiguous in a time period that is less than 4 years,

however once we get to 4 years or more, there seems to be a tendency that the longer that you have been investing into BTC then the better off that you are, even if there might be some BTC price peaks in some of the years that might cause the percentages to not be very different between some of the adjacent years, even though still the overall idea of the longer that you have been in the more likely the better off that you would have been by DCAing into bitcoin as compared to other possible methods, even though surely if you see prices after the fact, you still can make arguments that you might have had been able to figure out how to buy at lower prices. which seems mostly a fantasy, unless you had actually been able to do it, which also might have had been more luck than anything meaningfully undermining how DCA has tended to be a quite solid practice for allowing folks to be as aggressive as they are able to in regards to BTC accumulation and still likely being able to accumulate more BTC, even if it might have had costed them more than other strategies, but there also is likely some value to the fact that they had been able to consistently and persistent accumulate BTC over the years, and there is no real sign that DCA is becoming a less valuable strategy, especially when it comes to longer term BTC accumulation over 4-10 years or longer.