A Reddit User’s Unique bitcoin Investment Experiment

In a captivating story of determination and financial prudence, a Reddit user under the username u/Gorillahair2000 embarked on a unique investment experiment to showcase the potential benefits of consistently investing small amounts, also known as dollar cost averaging, into bitcoin.

The $5 Per Day bitcoin Investment

The Reddit user initiated an experiment to determine the worthiness of investing just $5 per day into bitcoin. Over the course of one full year, they diligently recorded their progress, revealing some intriguing findings.

Impressive Results after 365 Days

After 365 days of investing $5 per day, the Redditor accumulated a total of 0.075 bitcoin. The average purchase price of bitcoin throughout the year was $24,108.58, while the current price stood at $34,158.20, demonstrating a significant increase in value.

The total expenditure over the year amounted to $1,825.00. However, the current value of the investment reached $2,585.75. This resulted in a net change of +41.68%, indicating substantial growth in the investment.

Accounting for all Fees

To ensure accurate calculations, the Redditor accounted for the 0.5-1.0% spread on each purchase, reflecting the gains after adjusting for fees. They made their purchases using Strike, a popular bitcoin Lightning wallet, and securely stored the bitcoin in a hardware wallet following industry best practices.

Transforming Small Expenses into Significant Gains

In the span of one year, the Reddit user turned their daily expense equivalent to a cup of Starbucks coffee into a current value of $2,500, resulting in a gain of $750.

bitcoin‘s Potential and Dollar-Cost Averaging

This experiment clearly demonstrates that even with a modest budget, investing in bitcoin can generate substantial returns. It further highlights the power of dollar-cost averaging, a strategy that involves consistently purchasing assets at fixed intervals, regardless of their price. This approach mitigates the impacts of market volatility.

See also  Gemini Dollar vs Tether: Tradecurve Gets Bullish Rating

Moreover, this experiment emphasizes the advantages of bitcoin as sound money, immune to the depreciation commonly associated with traditional savings vehicles linked to inflationary fiat currencies.

### News source: bitcoinmagazine.com

By Team