Michael Saylor, chairman of MicroStrategy, shares how dollar-cost averaging in Bitcoin paid off for a patient investor who increased his investment 20-fold.
Bitcoin Evangelist Michael Saylor often promotes dollar-cost averaging (DCA). The enthusiast encourages investors to buy Bitcoin regularly and recommends holding the asset for at least five years.
Dollar-cost averaging involves investing a fixed amount of capital in an asset over a set period of time, regardless of market conditions. It helps reduce the impact of market volatility by spreading purchases out over a longer period of time.
Recently, Saylor divided a success story of a user who bought Bitcoin daily with a meager investment. Meanwhile, the malicious Bitcoin buyer has converted his small daily input into millions of dollars while praising Bitcoin’s rewarding performance.
The investor turns $98,640 into $2.2 million
According to Saylor’s disclosure, the smart money investor committed to purchasing $30 worth of Bitcoin daily. The user has relentlessly followed this course for nine years, especially since 2016 when Bitcoin traded below $800.
When the news broke, the user had spent $98,640 on the groundbreaking crypto asset. Meanwhile, his investments have paid off massively as Bitcoin has risen from under $800 to a new value All-time high of $108,000 and trades slightly below that the $100,000 Price mark.
Interestingly, the user’s Bitcoin stash is worth $2,157,090, a staggering 2,086% increase over his total capital. Such a gain exceeds the return on capital of traditional assets such as gold, stocks and bonds over the same period.
