Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
So maybe you could imagine a more whimpy investor (#1) who might have bought at various scattered times, between 2013 and present and maybe he acquired around 40 BTC for an average cost of $600 per BTC (total invested $24k invested), so he is doing quite well in terms of average cost per BTC. (portfolio valued at $1.7 million)
as compared with a second more aggressive investor (#2) who might have gotten in at the same time, made more mistakes, accumulated 80 BTC, but his average cost per BTC is around $2.4k per BTC... ($192k invested). It should be obvious that most of us would still rather be the second investor rather than the first one, even though his average cost per BTC is 4x higher than the first. (portfolio valued at $3.4 million)
As a comment:as compared with a second more aggressive investor (#2) who might have gotten in at the same time, made more mistakes, accumulated 80 BTC, but his average cost per BTC is around $2.4k per BTC... ($192k invested). It should be obvious that most of us would still rather be the second investor rather than the first one, even though his average cost per BTC is 4x higher than the first. (portfolio valued at $3.4 million)
Yes, wimpy investor #1 has less btc, but he/she also spent $166K less.
Let's assume for a second that the wimpy investor spent all 166K on NVDA on jan 1, 2014 (10 years ago).
That investor would now have (610/3.92)X166K=$25831633 in that investment and can buy 618 additional btc right now (618>>40 extra).
IF the same for AAPL, then 39.55 btc, which is essentially the same; 44.5 extra BTC "equivalent" for MSFT during the same time, beating "aggressive" by 5-10% (depending on how to count-the whole stash or only extra over 40).
What I am getting at: there were many choices (i just gave the three obvious ones) that would have given you the same btc-equivalent for a wimpy, but smart investor #1.
Of course, you needed to have taken a right choice of investment to get there.
<snip>
"in"? A strange remainder
On a more 'serious' note.
The universe inflated in a fraction of a second, then expanded more slowly.
Bitcoin had a hot inflation phase until maybe 2017.
Now, it is in a slowly expanding phase.
I am sorry, but drip-dripping at some small $ value per month will not make you rich if you start now, but it would, hopefully, preserve or even enhance your savings among the sea of inflationary fiat systems. That's the ticket.
Of course, some oil sheik can drop a couple of bil in bitcoin any time and make a positive disturbance or, conversely, MtGox or US Gov can sell a large chunk and cause the opposite move.
I compared "wimpy" investor choices with "aggressive" because both of them have had OTHER possibilities to invest, even among the mainstream investment vehicles.
You cannot just say that someone was wimpy because he/she bought once and allocated less because you don't know what else they have done.
For the sake of the argument, they might have outperformed the "aggressive" investor as i have shown in at least two common stock occasions (NVDA and MSFT; AAPL was essential even)