According to PlanB, which are analysts, Bitcoin investors are in for a tidy gain when you use the dollar-cost averaging method. The Bitcoin dollar-cost averaging can give investors so much even in a single year.
In a Twitter debate that happened on June 3 suggests that the short-term dollar-cost averaging (DCA) has the potential of yielding a 70% gain.
It is a hard tackle to ignore
The example that was given for a three-year period shows that one could yield returns of 70%, which is a hard tackle to ignore.
IMO investors cannot ignore this. If you dollar cost average into #bitcoin for 12 months, then wait 12 months, and then DCA out 12 months, this chart shows your return (investment=1). So DCA in 2017, wait for 2018, DCA out 2019 yields 1.7 or +70% return. Odds:13% <1 19% 1-2 68% >2
According to PlanB, it does not matter when an investor jumps in as Bitcoin has a good history of profitability that defies the odds. History suggests that the odds of getting a positive return are 9 to 1.
Is DCA the route to take?
DCA is a strategy whereby you buy assets in small amounts over time. This is an investment strategy to ensure that you are not exposed to the dynamic market swings, which are common with Bitcoin. As of the beginning of 2014, March was most the most volatile when it comes to the price of Bitcoin.
DCA is widely adopted and is a trend many investors cannot ignore. Records show that many are already using the strategy in the Bitcoin industry in the year.
In May, Cointelegraph did a report on Square, a payments company, exposing DCA Bitcoin buys to users. During that time, the data from dcaBTC, a dedicated calculated resource, suggested that if an investor buys $10 weekly, he will enjoy a 65% profit in three years.
Various sources suggest massive gains. When we track the quarterly returns, Q2 has topped 50% which surpasses gold at 7.2% and S&P500 at 20.8%.
Contrary to expectation, the overall investment is still lower compared to other established asset classes. There is, however, a report done this week that suggests that it is just a matter of time with the current growth rate that the price of Bitcoin beats the competition.