The #Bitcoin DCA Tower 🗼

Dollar-cost averaging is a common strategy for accumulating Bitcoin, involving regular purchases of a fixed dollar amount (e.g., weekly or monthly).

Bitcoin's price rises nonlinearly over time (power law), while DCA capital flow increases linearly. Simple math shows an upper limit to the Bitcoin you can accumulate, depending on two factors: 1) the DCA amount and 2) the start time.

I created a 3D surface plot with contours showing the maximum Bitcoin stack vs. DCA amount and start date. It highlights the challenge of achieving a specific stack, especially when starting later, as slopes steepen significantly along the time axis at higher Bitcoin values.

The chart is interactive; explore it on my website, where I also explain how I derived it: https://metashwin.com/posts/most-bitcoin-owned/#the-maximum-bitcoin-contours

https://blossom.primal.net/8349189f2fa15db53504033c5dae767a30e4faa8cf78b630e30cce01544f0c6b.mov

The Bitcoin DCA Tower helps you estimate the monthly savings needed to reach a target Bitcoin stack. It also highlights the penalty for starting late, as the DCA amount required to accumulate the same Bitcoin rapidly increases over time.

If you've seen Smitty's (@sminston_with) excellent retirement guide, you know the amount needed to retire on Bitcoin. If you combine the two charts, you essentially have your very own Bitcoin-powered pension scheme!

Like and follow if you want more of such content.

Last but not least, do your own research; don't simply take my word for it. #NFA