Redditor Earns 41% Return Investing $5 Into Bitcoin Every Day for 1 Year

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In a compelling tale of persistence and financial prudence, a Reddit user embarked on a unique investment experiment, demonstrating the potential rewards of consistently investing small amounts, or dollar cost averaging, into Bitcoin. 

The Redditor, going by the handle u/Gorillahair2000, initiated an experiment to determine whether allocating just $5 per day into Bitcoin was a worthwhile endeavor, and over the course of one full year, diligently recorded their progress.

After 365 days of investing $5 per day, the Redditor accumulated a total stack of 0.075 Bitcoin. The average purchase price stood at $24,108.58, while the current price of Bitcoin was $34,158.20. 

The total expenditure over the year amounted to $1,825.00, and the current value of the investment was $2,585.75, yielding a net change of +41.68%.

The Redditor also noted that they accounted for the 0.5-1.0% spread on each of their purchases, meaning the gains remained after adjusting for fees. The user indicated that they buy with Strike, a popular Bitcoin Lightning wallet, and then withdraw the Bitcoin to a hardware wallet, in line with industry best practices.

In a year’s time, they transformed the daily expense equivalent to a Starbucks coffee into $2,500 in current value, or a $750 gain.

The experiment proves that even with a modest budget, investing in Bitcoin can yield significant returns, and it further demonstrates the power of dollar-cost averaging, a strategy that involves consistently purchasing assets at fixed intervals, regardless of their price, thereby mitigating the effects of market volatility.

Further, it also highlights Bitcoin’s main advantages as a sound money, one that doesn’t depreciate like traditional savings vehicles tied to inflationary fiat currencies.



Source link Bitcoin Magazine

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