Bitcoin (BTC) Savings Plans Show Their Strength – Currently All in Plus
Originally posted here.
By: Stephan Fiedler
Overview
Anyone who buys Bitcoin (BTC) on a recurring basis has definitely made a profit with their investment strategy currently calculated in US dollars. This is […]
The Post
Anyone who buys Bitcoin (BTC) on a recurring basis has definitely made a profit with their investment strategy currently calculated in US dollars. This is shown by a current study, which surprises even some experts.
Large crypto exchanges such as Bitpanda or Binance have been advertising Bitcoin (BTC) savings plans for years. Behind this is a concept known in English as “Dollar Cost Average” (DCA) and in German as “Durchschnittskosteneffekt”. The idea is that a saver buys an asset class such as Bitcoin at regular intervals for the same amount in US dollars and is not distracted by price fluctuations. In the medium and long term, this DCA concept should yield profits if the asset class is well chosen. And indeed: On Twitter , Wicked’s infographic is currently causing a stir, which proves: Anyone who has ever started a Bitcoin DCA is now in the black, no matter when the start date was.
Saifedean Ammous, author of the best-selling The Bitcoin Standard, exults : Even when Bitcoin is trading 55 percent below its all-time high, as it is now, DCA savings plans for BTC have paid off. Thus, Bitcoin has impressively proven its strengths as a means of choice for savings plans. To be fair, we should add: This situation has only emerged this week; in June, Wicked’s infographic at the time still showed individual days when the start of a DCA Bitcoin savings plan historically remained in the red.
Since the beginning of the year, Bitcoin has posted gains of around 85 percent and is currently trading around $31,000. Bitcoin’s newfound strength is attributed in part to the fact that a Bitcoin ETF could be on the verge of approval in the United States. If this actually happens, optimists believe it is possible that Bitcoin will also crack its previous all-time high of a good 68,000 US dollars from November 2021 again.
Conclusion: Bitcoin savings plan is a solid idea
We once explained to you here what exactly Bitcoin’s sub-units are all about, which are used in BTC savings plans with normal income. And here is our overview to the discussion on whether or not it makes sense to spend Bitcoin in the medium and long term. Currently, those who have always touted Bitcoin savings plans as a solid method to create wealth are right. At Bitpanda you can find an interesting Bitcoin savings plan based on the DCA concept here and at Binance the starting point for a Bitcoin savings plan is to click here .