Alright. This one's going to be fun.
Yeah. It's going to be real fun.
We thought it'd be kind of cool to show you guys the power,
like a fun little thought experiment,
the power of DCA.
Now, what does it stand for?
Dollar-cost average.
Now, obviously, I've got to explain to you what this is, if you don't know.
We've talked about it a lot on the channel, so most of you guys probably understand this.
But what we're going to be looking at, we're going to be looking at,
if you have been dollar-cost averaging into Bitcoin for the last 9 years since 2013.
We're going to tell you why that date is important.
How much money would you have?
Now, it's important to also know when it comes to this,
the percentages are always going to be the same.
Bitcoin's return the same percentage since 2013.
But what you can vary is the amount of investment.
And that obviously affects the overall bottom line amount that you make.
So, dollar-cost averaging is when you take a specific amount of money
and you put it into a specific coin on a time schedule.
So, right now, I'm dollar-cost averaging into Ethereum with a small portfolio.
$100 a day into Ethereum
We're going to see how that does over this bull run.
I'm going to keep doing it all throughout the bull run until I think we hit the top.
When is the top of this bull run going to be?
It's going to be a long time.
Probably somewhere around Halloween, September,
but sometime between August and December of 2025.
So you got plenty of time to do this.
So what we're going to do is we're going to be looking at dollar-cost averaging
through the history of Bitcoin.
Now, when was the Bitcoin whitepaper published?
Just take a guess.
I'm going to go 12 years.
Wrong.
The Bitcoin whitepaper was published on Halloween 2008.
That's when it was published.
The first Bitcoin was mined 01/2009.
That's when the first Bitcoin was mined by Satoshi, of course.
Now, here's what's interesting.
I've done a lot of research on this
and try to determine what the original price of Bitcoin was.
And it's really hard to determine.
But what a lot of people believe is
you could actually get four Bitcoin for a penny.
One Honest Abe will have gotten you four BTC on this date.
You guys like Honest Abe?
Do you think Abraham Lincoln ever told a lie?
George Washington didn't.
That's what they say.
~and that's facts~
That's the first price of Bitcoin.
Now, that's really hard to estimate
because Bitcoin was not actually traded at that point.
We didn't actually start tracking Bitcoin trading until 2011,
which-- I believe 2011 or 2010.
I can't remember exactly which one.
That was when you had the first transaction for a good,
where you had somebody that paid, old Laszlo, 10,000 Bitcoin for two pizzas.
There were two pepperoni pizzas from Papa John's.
Not a big fan of Papa John's, but big fan of pepperoni.
2011 was actually the time that we started tracking the price of Bitcoin on exchanges.
So, in 2011, Bitstamp actually had the price of Bitcoin tracked September 2011.
So September 2011.
About a year and three months before I bought my first Bitcoin.
And the first price they had it was $11.66.
Now, I bought my first Bitcoin around $12 in 2012.
So this is a little bit over a year.
It showed probably the sideways action that we're going to see probably next year,
you know, in between kind of a bull market and a bear market.
So the point is, is that we saw this tracked.
So what we're going to do is we're going to look at
what dollar-cost averaging would have looked like.
We're going to say 2013.
Because 2013 is when a lot of people really started understanding what Bitcoin was.
People started trading it.
Coinbase was going.
I believe, in 2013, Coinbase, it just started.
We just had the Mt. Gox crash.
Coinbase may not start till 2014, so don't quote me on that.
But Mt. Gox actually crashed February of 2014.
So this was actually right when things were really popular,
with Mt. Gox, BitInstant, and things like that.
So a lot of people were starting to trade, trade Bitcoin.
So, remember this, guys, when we look at these numbers.
A 100% return, a 100% ROI, always equals a 100% ROI.
People get confused on this when it comes to the prices of coins.
They'll say, "Oh, well," you know,
"I'm going to buy a million Dogecoin instead of one Bitcoin.
I don't know what those numbers work out to.
But I'm going to buy a million Dogecoin instead of one Bitcoin
because, you know, if the price goes up, man, the price of Dogecoin can go so high."
No, guys.
A 100% gain is always equal to a 100% gain.
It doesn't matter what the cost of the coin is.
So let's check out,
over the last 9 years, what would happen if you dollar-cost averaged into Bitcoin?
You would have got a return of 1,875%.
That's what the ROI would have been since then.
That's a total of 468 weeks of investment
if you were to have dollar-cost averaged since 2013.
So what we're going to do right now, let's look at,
if you would put $10 per week into Bitcoin since 2013,
what would you be looking at?
Well, that would have been $40 a month you were putting in approximately.
Obviously, some weeks have-- some months have five weeks. Okay?
9 years, how much do you think you would have?
You put $10 in per week.
Right now, you would have 4.8 Bitcoin.
4.8. Bitcoin just putting $10 in a week since 2013.
Today, what does that equal?
Today, that equals $91,075 today.
However, at the peak last year, you'd have actually had $333,126.
Boom!
$10 a week. That's it.
And you might be saying like,
"Oh, well, yeah, but the best gains in Bitcoin are gone."
Well, yeah, you're probably right.
The best gains of Bitcoin are probably gone.
But you don't have to just dollar-cost average into Bitcoin.
You could be dollar-cost averaging into XRP,
dollar-cost averaging into Ethereum, like I do,
Cardano,
maybe some more speculative coins,
maybe some layer 2 coins, things like that.
What if you had done $100 per month since 2013?
What would that look like?
Well, this is pretty crazy as well.
Right now--
and, by the way, of course, that's $25 a week.
Just $25 a week. That's it.
You would have 11.5 Bitcoin.
And right now, today, that's worth $218,224.
At the peak,
9 years could have made you a millionaire.
That's why it's important to take those profit, guys.
You can keep dollar-cost averaging, but you can also take profits.
That's actually a pretty good strategy.
Alright. Now, let's say--
we just looked at $100 a month.
Now, let's say you did $100 per week.
$400 per month
So $400 a month,
how much would you have right--
What do you think the number is, Aaron, if you did $100 a week over the last 9 years?
How many Bitcoin?
I'm going to go with, like, 22 Bitcoin?
65 Bitcoin
Wasn't even close.
65 Bitcoin!
Now, right now, that is worth $1.23 million.
At the peak,
$4.5 million is what you would have had at the peak.
That's what you would have had at the peak.
That's retirement money, if you're unaware.
Very close to it, if not retirement money, right there.
If you were to basically, like, let's say instead of Bitcoin, okay,
let's say you had decided, like, "Hey, I'm going to average into the S&P 500."
Now, remember, that's about a 2-- almost a 2,000% gain.
How much do you think you would get if you had invested into the S&P 500
during that same time?
The S&P 500,
which is an index of the top stocks out there,
what would you get?
Let's say you overall invested $10,000.
Let's say you invested $10,000.
You would have $13,500.
Yikes!
Yeah! Yikes!
Let's think about this, guys.
Warren Buffett, famous for telling you to dollar-cost average.
Which one would you have rather dollar-cost averaged into?
S&P 500 or Bitcoin?
I think the answer is pretty obvious.
So why don't you make sure to dollar-cost average your way into liking this video?
Don't forget to subscribe to the channel.
That's all I got.
Be blessed.
BitBoy out.