Many new investors believe they missed the “bitcoin train”. But that’s not true. Less than 10% of the world’s population currently knows about Bitcoin. That means: Over 6 billion people in the world know nothing about Bitcoin. So the investors who jump in now and think they’ve missed the boat are really early adopters.
That being said, dollar cost averaging (DCA) has become an increasingly popular way to invest in the market. Dollar-cost averaging is the art of spreading the investment over a period of time instead of buying everything in one go. Put simply, let’s say an investor has $ 1,000 to invest in BTC. Instead of buying $ 1,000 worth of BTC all at once, he could choose to spread the purchase out over a period of time.
Said investor could therefore decide to buy the BTC in a period of 10 days. He buys $ 100 worth of BTC every day for 10 days. Or he buys $ 10 worth of BTC over 100 days. The idea behind it remains the same: the investment is diversified so that the effects of volatility on the investment in question are reduced.
How it works with Bitcoin
Bitcoin is at least a decade old at this point. So a lot has happened in the market. Given the tremendous growth, investors wish they had invested a large amount in the asset when it was cheap. But what if you had invested $ 10 in Bitcoin every day for the past five years? How much would you have now?
Well, if an investor had invested $ 10 in BTC every day for the past five years, the total would have grown to just over $ 18,300. But the amount in BTC would have been over $ 334,000. This results in a return of more than 1,800% on the investment. So an investment of $ 300 per month would have returned over $ 300,000 after subtracting the initial investment.
If you went back further than five years, the profits would be even higher. And if you go back ten years, investments would have increased by over 100,000% in the last ten years alone.
Bitcoin price to date
Bitcoins were literally worth nothing when they hit the market: $ 0. They were given away for free. You could mine them with an old laptop and have hundreds of bitcoins in no time. But as people realized the benefits of the technology, the price of the asset skyrocketed.
That, in turn, has resulted in BTC gaining in value over time. More and more people started to use the asset. But until the dark web portal “Silk Road” was closed, it was still not widely known. When federal officials blew up the website where BTC was the main currency, everyone wanted to know what that currency was. Especially one that could not be traced.
The price then remained largely unchanged – until 2017, when one of the most notable bull markets took place. The price of BTC rose from under $ 4,000 to $ 19,000 between April and December 2017, reaching a new all-time high.
At the time, it looked like BTC had peaked and was falling back to zero. But four years later, BTC is still on the rise – and $ 30,000 is now seen as the low point for the cryptocurrency. This shows how much Bitcoin can and will grow in the years to come.
Proof of text: Newsbtc
Last updated on August 15, 2021
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