Bad news first: a crash tomorrow is possible. That's stating the obvious—if prices were guaranteed to rise, this column would simply say "Buy." Written by Kin Ko, a BlockTempo columnist and founder of LikeCoin's "Likecoin Citizen Foundation."
👉 Bitcoin investment strategies for volatile markets
The Case for Dollar-Cost Averaging Bitcoin
Daily $100 Bitcoin Purchases: The Data
A public spreadsheet (bit.ly/decentralizehk-btc-dca) tracks Bitcoin's daily price from December 17, 2017 (ATH: $19,476) to December 24, 2020, simulating $100 daily purchases:
- 1-Month Performance (Dec 1–Jan 5):
$2,400 → 0.1193 BTC ($20,121 avg)
61.2% ROI - 1-Year Performance (Dec 2019–2020):
$36,600 → 3.7523 BTC ($9,754 avg)
226.7% ROI - 3-Year Performance (Dec 2017–2020):
14.85 BTC ($7,433 avg)
332% ROI
Key Insight: Even buying at ATHs, DCA smooths volatility. March 2020's $4,000 trough would devastate lump-sum investors but empowered DCA adopters to accumulate cheap coins.
Psychological Advantages
- Lump-sum risks: Requires timing the market perfectly and enduring extreme stress during downturns (e.g., 2018’s $3K–$5K stagnation).
- DCA benefits: Automatically buys more during dips, lowering average costs. Focuses on long-term growth rather than daily price swings.
"What if Bitcoin crashes tomorrow? Keep buying, stay relaxed, and focus on living." — Kin Ko
👉 Master crypto volatility with DCA
FAQ: Bitcoin Dollar-Cost Averaging
Q: Is DCA better than lump-sum investing?
A: DCA reduces emotional stress and market-timing risks, though lump-sum may outperform in bull markets.
Q: How much should I invest daily?
A: Start with affordable amounts (e.g., $10–$100). Consistency matters more than quantity.
Q: What’s the minimum investment period for DCA?
A: 1+ years recommended to ride out volatility cycles.
Related Institutional Perspectives
- BlackRock CIO: Bitcoin may replace gold as a superior store of value.
- JPMorgan Analysis: Capital shifting from gold to Bitcoin reflects a long-term trend.
- Robert Kiyosaki: Advises accumulating Bitcoin/gold ahead of predicted banking crises.
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