Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Marvelockg
on 01/03/2024, 11:21:27 UTC
⭐ Merited by JayJuanGee (1)
We looked at the crypto currency market in September 2023 when the price of Bitcoin was around $25,000 and if you bought 1 Bitcoin it would be twice (2x) what it is today. This clearly shows that this is not a long-term investment but an example of a short-term investment. If you were to invest in the DCA method at the same price at the same time let's say you would have invested $100 per week or month. Then the amount of your invested bitcoins would be 6 x 100 dollars in 6 months i.e. 600 dollars.

So if you have more amount of money then invest more amount of bitcoins and you will be able to earn more profit even if it is a short term investment.
I find this analysis too theoritical and might not be realistic for an average person to put into application.

Buying a whole Bitcoin at a time at the rate of $25k doesn't look like something an average person can do, how much do you earn that will give you that kind of savings? The reason why people prefer to continue buying using the DCA method is basically because it's almost impossible for most average investor to start thier accumulation journey with something close to 1BTC and so they set out an amount of Satoshi that they can comfortably work with and continue accumilating.

For someone that earns the range of $100 a week, he can decide to invest 30% of his earning if he can sustain himself with the remaining 70% and if he continues with this trend, it will take him around 834 weeks which is approximately 16 years to accumulate up to 1BTC at the rate of $25k. Those that are already financially strong and could afford to invest as high as $500 a week could attain thier desired target within a shorter period of time but it's not always about who is able to accimilate up to a a whole Bitcoin or not, every one has thier financial strength and it's only best we all stick with ours although the lower the amount invested through a routine DCA method,the longer it will take before the investment yields the desired profit
but the good thing is that even after you started with as low as $30 a week, if your finance grows, you can increase the amount you will be putting into your holding at your own pace and convince.