A few months sideways (time) consolidation would have been expected however price appears to defy gravity atm.
Some mainstream coverage in highlighting how the escape hatch operates, could help save a few more souls
The resiliency of btc is certainly attracting non bitcoiner capital allocators to study it in detail
Great opportunity for beginners to stack sats at discounted rate given the upcoming halving event in ~12 months. Ideally the price remain subdued in next few months so many more newbies can onboard at lowest risk.
This is the most prominent security risk that needs to be addressed
Many highly intelligent people fail to see it even when dangled in front of their eyes, makes you wonder why we are so different
Interesting times ahead, few realise how the supply squeeze developing at this cycle bottom plays out the next cycle
Lump sum (LS): one initial all-in purchase
Dollar cost averaging (DCA): even purchases made over a period of time
LS is a much better #bitcoin savings strategy compared to DCA.
The following analysis calculates the returns of each strategy across multiple time periods.
The longer the time period, the more likely LS will outperform a daily DCA strategy. In general, LS outperforms on up swings and DCA outperforms on down swings. Over the 3 & 4-year periods, the only time DCA outperforms is near cycle tops!
🟠: Lump Sum > DCA
🟢: DCA > Lump Sum
https://pbs.twimg.com/media/Fo9CkjcWYBYOyk-?format=jpg&name=large
These figures show the returns for each analyzed period and with varying degrees of an initial LS + daily DCA. The bottom represents a 100% daily DCA strategy and the top represents a 100% LS strategy. The middle would be a 50% initial LS + 50% daily DCA strategy.
https://pbs.twimg.com/media/Fo9C7vTWYA4GFQY?format=jpg&name=large
https://pbs.twimg.com/media/Fo9C9r_WYA0uUw0?format=jpg&name=large
https://pbs.twimg.com/media/Fo9C-5PWYAUO_Fo?format=jpg&name=large
https://pbs.twimg.com/media/Fo9DAP-WYBwmeyL?format=jpg&name=large
Over all time periods, the median return of the LS strategy is much greater than the median return of the daily DCA strategy. The longer the time period, the more pronounced this difference becomes.
LS is a high risk, higher rewards strategy. DCA is a more conservative strategy.
https://pbs.twimg.com/media/Fo9Dj31XEAA1ksv?format=jpg&name=large
https://pbs.twimg.com/media/Fo9Dp-xWYBIMIhM?format=jpg&name=large
https://pbs.twimg.com/media/Fo9Dqw0WYAIs07c?format=jpg&name=large
https://pbs.twimg.com/media/Fo9DrlxXsAE9jRk?format=jpg&name=large
In summary, the LS strategy consistently outperforms the daily DCA strategy across every analyzed time period and throughout all of #Bitcoin's history.
When saving in #bitcoin, time in the market beats timing the market!
Data source: Glassnode
Sponsors: BTC Times & Satoshi’s Journal
V4V donations gladly accepted! ✌️🍎🍻
https://pbs.twimg.com/media/Fo9J4XjXwAEQpxK?format=jpg&name=medium
Great work! LS is lowest risk at market cycle bottoms.
The coming revolution will be controlled by the many, not the few
Indoctrinate generations into a system that they control, until....
Hoping many more plebs front run the coming institutional landslide
