MicroStrategy chairman Michael Saylor shares how dollar-cost averaging on #Bitcoin paid off for a patient investor who flipped his investment over twentyfold.
Bitcoin evangelist Michael Saylor often promotes dollar-cost averaging (DCA). The enthusiast encourages investors to periodically buy Bitcoin and recommends holding the asset for at least five years.
Dollar-cost averaging involves investing a fixed capital into an asset at a set interval, regardless of the condition of the market. It helps in reducing the impact of market volatility by spreading out purchases over time.
Recently, Saylor shared a success story of a user who bought Bitcoin daily with a meager investment. Meanwhile, the vicious Bitcoin buyer has turned his little daily input into millions of dollars, lauding Bitcoin’s rewarding prowess.
Investor Turns $98,640 into $2.2 million
According to Saylor’s disclosure, the smart money investor committed to buying $30 worth of Bitcoin daily. The user unrelentingly pursued this course for nine years, specifically since 2016, when Bitcoin traded under $800.
As of the time the news made the rounds, the user had spent $98,640 on the pioneering crypto asset. Meanwhile, his investments have paid off massively, as Bitcoin has surged from under $800 to a new all-time high of $108,000 and trades slightly below the $100,000 price mark.
Interestingly, the user’s Bitcoin stash is worth $2,157,090, a staggering 2,086% uptick from his total capital. Such profit trounces the return on investments from traditional assets like gold, stocks, and bonds in the same timeframe.
