If you had simply bought $50 worth of BTC, gold, and Nasdaq every week for the past 5 years, you would have invested exactly $13,050. Bitcoin turned out to be the most profitable asset, with a net profit of $12,543 (+96.11%).
With the same strategy, gold would have returned $9,377 in profit (+71.85%), while the Nasdaq would have returned $8,781 (+67.29%).
The numbers clearly show the power of the DCA strategy. It smooths out all the sharp drops, and there were plenty of those over these 5 years. Despite high volatility and bear market cycles, BTC still outperformed both the defensive asset and the tech index over the long run.
Personally, I think the main takeaway here isn’t that Bitcoin is “better,” but that consistency beats trying to guess the perfect entry point.
Do you use DCA in your portfolio, or do you prefer trying to catch the local bottom with a one-time purchase?
With the same strategy, gold would have returned $9,377 in profit (+71.85%), while the Nasdaq would have returned $8,781 (+67.29%).
The numbers clearly show the power of the DCA strategy. It smooths out all the sharp drops, and there were plenty of those over these 5 years. Despite high volatility and bear market cycles, BTC still outperformed both the defensive asset and the tech index over the long run.
Personally, I think the main takeaway here isn’t that Bitcoin is “better,” but that consistency beats trying to guess the perfect entry point.
Do you use DCA in your portfolio, or do you prefer trying to catch the local bottom with a one-time purchase?