We just updated the results of dollar cost averaging. I cannot emphasize enough the importance of this savings strategy. Even if you started at the December 2017 peak with very worst timing you are in the black.
Even with sharply falling Bitcoin prices, those who follow a disciplined dollar cost average program are in great shape. A savings of $500 per month since the 2014 peak has an unrealized equity of $414,267.01 with a total investment of $32,500.00.
Further, by following this savings strategy the investor with the very worst timing avoided the catastrophe realized by late buyers in December 2017. While the equity down turn has been significant, it has not been devastating.
Dollar cost averaging from the December 2017 peak saved an investor the heartache of purchasing the top of the market only watch it lose 80% in value. Even with the very worst timing a total investment of $6,500 in December 2018 had a draw down to $2,987.92 or 54% which has improved significantly since the market stopped declining. (Incidentally, this percentage draw down nearly matches the maximum draw down of January 2015 from the 2014 peak.)
With the recent rebound a total investment of $9,000 has an equity of $12,122.82. By definition dollar cost averaging means you will be accumulating more bitcoin at lower price levels.
So when should those who are looking to transition buy into bitcoin? The answer is last month, this month, next month and every month thereafter. The monetary transition remains in its infancy. The wise hodlers of today will be the fourth wave early adopters of tomorrow.
The following flagship article has been updated to reflect this new research.
HOW TO ACHIEVE THE SAME RESULTS OF A PROFESSIONAL BITCOIN TRADER WITHOUT TAKING THE INHERENT RISKS
As a former gold bug and self taught economist I first heard about bitcoin when it traded par with the dollar and then…
PS: Dollar Cost Averaging only works on THE BITCOIN STANDARD and does not work in THE CYRPTO WORLD.
PPS: A .csv file of dollar cost averaging is available to all Premium Lifetime Subscriptions available at the link below.