In a compelling story of persistence and financial prudence, a Reddit user embarked on a unique investment experiment, demonstrating the potential rewards of consistently investing small amounts, or dollar-cost averaging, into bitcoin.
The Redditor, following the handleu/Gorillahair2000began an experiment to determine whether the assignmentbitcoin/comments/17ihmc6/today_is_day_365_of_my_5day_experiment/”>only $5 per day in bitcoin was a worthwhile endeavor, and over the course of a full year, they diligently charted their progress.
After 365 days of investing $5 per day, the Redditor amassed a total stack of 0.075 bitcoin. The average purchase price stood at $24,108.58, while the current bitcoin price was $34,158.20.
Total spending during the year amounted to $1,825.00 and the current value of the investment was $2,585.75, resulting in a net change of +41.68%.
The Redditor also noted that they accounted for the 0.5 to 1.0% spread on each of their purchases, meaning the profits were maintained after adjusting for fees. The user indicated that he purchases with Strike, a popular bitcoin Lightning wallet, and then withdraws the bitcoin to a hardware wallet, in accordance with industry best practices.
In one year, they transformed the daily spending equivalent of a Starbucks coffee into $2,500 in today’s value, or a profit of $750.
The experiment demonstrates that even with a modest budget, investing in bitcoin can generate significant returns, and further demonstrates the power of dollar-cost averaging, a strategy that involves constantly purchasing assets at fixed intervals, regardless of their price, thereby mitigating the risks. effects. of market volatility.
Furthermore, it also highlights the main advantages of bitcoin as sound money, which does not depreciate like traditional savings vehicles linked to inflationary fiat currencies.
