08-13-2021, 01:13 PM
I Calculated This: What if YOU Bought 1$ of Bitcoin Everyday for 11 Years? (And Impo
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/"> <img src="https://external-preview.redd.it/gePq3tF-XAYLtov6IR-uHJRR_06pmnXYuyrLIeU9MJ4.jpg?width=216&crop=smart&auto=webp&s=5e97e745a2b4e40e22ca003bea70f79b7d3bc464" alt="I Calculated This: What if YOU Bought 1$ of Bitcoin Everyday for 11 Years? (And Importance of DCA)" title="I Calculated This: What if YOU Bought 1$ of Bitcoin Everyday for 11 Years? (And Importance of DCA)" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>This is a hypothetical scenario, but I think it showcases in a very simple (and very exaggerated) way the Beauty of Dollar Cost Averaging (DCA). Data is 11 years from July 18, 2010 to August 12, 2021. Source of Prices:<a href="https://ph.investing.com/crypto/bitcoin/historical-data">https://ph.investing.com/crypto/bitcoin/historical-data</a></p> <p>​</p> <p><a href="https://preview.redd.it/gt40jeykdyg71.png?width=623&format=png&auto=webp&s=9cb3d883605fa2010f0d56893b4880fc4a3771af">Price of BTC</a></p> <p>There are actually 4000+ rows of data. I divided 1$ to the Average Price of the Coin for the day and that yielded the amount of BTC that I get. I simply added those together to get a sum of **1,577.692316 BTCs!** That's quite more than what I have, sadly.</p> <p>​</p> <p><a href="https://preview.redd.it/q7c05oapdyg71.png?width=94&format=png&auto=webp&s=de194c032319c85886f0d0ee487470d55e50a628">That's kinda many</a></p> <p>Your capital is $4044 because you spent a dollar a day. However, your total BTC holding is now worth **$70,218,509.68**, using the current price of BTC. That's more than 17,000x of your initial investment. At this point, you're better off hiring hundreds of lawyers than actually paying taxes jk.</p> <p>​</p> <p><a href="https://preview.redd.it/shkskncudyg71.png?width=1315&format=png&auto=webp&s=98e5dad546c587676a9e4b651036b1ff62244a6c">Very accurate representation (Blues is Price, Red is Average)</a></p> <p>This is literally Dollar Cost Averaging because you are spending a Dollar a Day jk. But in all seriousness, Cyptocurrencies is a VERY VOLATILE market. What DCA does for you is it straightens out the fluctuations. Like the image above but VERY SIMPLIFIED (Dips make your dollar stronger). All it takes is one Mega rally above your line, and You'll hit jackpot.</p> <p>​</p> <p>TLDR: You would have been rich if you bought Bitcoin a long time ago, but you know that already and DCA works in a coin that has a future.</p> <p>​</p> <p>Edit: This is very simplified and very exaggerated as stated in the first paragraph. Honestly if you bought 11 years ago, DCA would be the least of your worries. But it was a fun thought experiment to see how much BTC I would have by buying a dollar a day. A more realistic timeframe would be 2017 and a 4 year DCA.</p> <p>You could also add up 1 dollar a day to like 7 dollars per week by just simply adding them. Still roughly gets the average.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Nozomilk"> /u/Nozomilk </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/">[comments]</a></span> </td></tr></table>Kind Regards R
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/"> <img src="https://external-preview.redd.it/gePq3tF-XAYLtov6IR-uHJRR_06pmnXYuyrLIeU9MJ4.jpg?width=216&crop=smart&auto=webp&s=5e97e745a2b4e40e22ca003bea70f79b7d3bc464" alt="I Calculated This: What if YOU Bought 1$ of Bitcoin Everyday for 11 Years? (And Importance of DCA)" title="I Calculated This: What if YOU Bought 1$ of Bitcoin Everyday for 11 Years? (And Importance of DCA)" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>This is a hypothetical scenario, but I think it showcases in a very simple (and very exaggerated) way the Beauty of Dollar Cost Averaging (DCA). Data is 11 years from July 18, 2010 to August 12, 2021. Source of Prices:<a href="https://ph.investing.com/crypto/bitcoin/historical-data">https://ph.investing.com/crypto/bitcoin/historical-data</a></p> <p>​</p> <p><a href="https://preview.redd.it/gt40jeykdyg71.png?width=623&format=png&auto=webp&s=9cb3d883605fa2010f0d56893b4880fc4a3771af">Price of BTC</a></p> <p>There are actually 4000+ rows of data. I divided 1$ to the Average Price of the Coin for the day and that yielded the amount of BTC that I get. I simply added those together to get a sum of **1,577.692316 BTCs!** That's quite more than what I have, sadly.</p> <p>​</p> <p><a href="https://preview.redd.it/q7c05oapdyg71.png?width=94&format=png&auto=webp&s=de194c032319c85886f0d0ee487470d55e50a628">That's kinda many</a></p> <p>Your capital is $4044 because you spent a dollar a day. However, your total BTC holding is now worth **$70,218,509.68**, using the current price of BTC. That's more than 17,000x of your initial investment. At this point, you're better off hiring hundreds of lawyers than actually paying taxes jk.</p> <p>​</p> <p><a href="https://preview.redd.it/shkskncudyg71.png?width=1315&format=png&auto=webp&s=98e5dad546c587676a9e4b651036b1ff62244a6c">Very accurate representation (Blues is Price, Red is Average)</a></p> <p>This is literally Dollar Cost Averaging because you are spending a Dollar a Day jk. But in all seriousness, Cyptocurrencies is a VERY VOLATILE market. What DCA does for you is it straightens out the fluctuations. Like the image above but VERY SIMPLIFIED (Dips make your dollar stronger). All it takes is one Mega rally above your line, and You'll hit jackpot.</p> <p>​</p> <p>TLDR: You would have been rich if you bought Bitcoin a long time ago, but you know that already and DCA works in a coin that has a future.</p> <p>​</p> <p>Edit: This is very simplified and very exaggerated as stated in the first paragraph. Honestly if you bought 11 years ago, DCA would be the least of your worries. But it was a fun thought experiment to see how much BTC I would have by buying a dollar a day. A more realistic timeframe would be 2017 and a 4 year DCA.</p> <p>You could also add up 1 dollar a day to like 7 dollars per week by just simply adding them. Still roughly gets the average.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Nozomilk"> /u/Nozomilk </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p312hz/i_calculated_this_what_if_you_bought_1_of_bitcoin/">[comments]</a></span> </td></tr></table>Kind Regards R