The results of a new study show that the investme of all the people who have bought a fixed amou of bitcoins daily and coinuously over the past years is now officially profitable.
According to DeCrypt, a Bitcoin investor named Wicked (@w_s_bitcoin) shared a chart on Twitter on Monday showing the weighted average cost of buying Bitcoin. According to this data, investors who bought Bitcoin using the “Dollar Cost Averaging” (DCA) method are now in the profit, regardless of when they started investing.
Dollar cost averaging is a strategy in which investors spend a fixed amou of money to buy stocks or digital currency at regular iervals, regardless of asset price changes. The strategy aims to reduce the stress and complexity of determining the right time to eer a highly volatile market, and is often touted by promine Bitcoin propones as a wiser alternative to trading.
Also Read: Three Low-Risk Cryptocurrency Trading Methods for Beginners
The data in this chart shows that the weighted average price paid to buy Bitcoin reached $31,233 as of July 3, which is the highest price level since June last year. Wicked explained:
When the eire orange line goes below the white dashed line, all those who bought Bitcoin with the daily DCA strategy will be in profit.
Of course, this does not mean that all Bitcoin investors are in the profit, especially those who bought $69,000 worth of Bitcoin in November 2021 (Aban 1400) and have done nothing since. In corast, those who have coinued to buy frequely since then have recouped some of their losses by buying during dips; Like when the price of Bitcoin fell below $16,000 after the crash of the FTX exchange.
Saifuddin Amos, author of The Bitcoin Standard, tweeted on Monday:
Regular buying is profitable for everyone, even when the price of Bitcoin is down 55% from its high. A stunning testame to Bitcoin’s power as a lifesaving technology.
The price of Bitcoin has grown by about 85% since the beginning of 2023 uil today. Declining confidence in the banking system in March and increasing confidence in the possibility of spot Bitcoin ETF approval in the United States after BlackRock’s application in June were among the most importa reasons for this growth.
Thanks to the rece price growth, microstrategy investing in Bitcoin has also come out of losses. This company, as one of the largest institutional investors of Bitcoin, has a total of 152,333 Bitcoins during repeated purchases since August 2020 (August 2019). Michael Silver, CEO of MicroStrategy, is known for his “never sell bitcoin” advice.
