Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
MusaPk
on 25/12/2023, 08:09:18 UTC
⭐ Merited by JayJuanGee (1)
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,

Yes I do checked my numbers and they are at the moment positive. That's probably because price of Bitcoin has gone up and most of my accumulation was when price was below 30k. If price comes back to 30k then defiantly the numbers will be levelled very much. In short term, numbers can go up and down. To see full benefit of DCA one has to wait for a period of almost 4 to 5 years.  
I got your point that we can use these sites as tools but actual calculations must be done through our own hands and calculator.

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. 

If you keep on investing in DCA manner then after sometime you get to know more about how to do DCA in a way that can give you additional benefit, provided you keep  calculations from your own hand and calculator. Its just a matter of time before you start seeing yourself confident in DCA and figuring out when to be more aggressive.
Bitcoin still takes big dives in its price. Last December price was 16k and this December its gone way up to 43k. If your DCA is span over a period of 4 to 5 years and you are continuously doing it then it wont be difficult for you to judge when to buy more.