Warren Buffett has a message to young investors: dollar-cost average into major stock market indices.
Buffett has long expressed his optimism towards dollar-cost averaging into stock market indices.
Cost-dollar averaging into Bitcoin works, history shows.
If an investor cost averaged $100 into Bitcoin since January 2014 and spent $35,700 in total, it would have returned 1,648% or around $589,000.
On Aug. 6, the price of Bitcoin was at $11,744 on Binance.
"Despite #Bitcoin still trading 30% below ATHs, dollar cost averaging from the peak of the market in Dec 2017 would have return 61.8%, or 20.1% annually."
The price of Bitcoin has increased from $11,744 to $13,840, by 17.9% in three months.
There are several reasons why investing in Bitcoin over a long period has worked regardless of price volatility.
Dollar-cost averaging has worked for Bitcoin because BTC can have extreme corrective phases.
In March 2020, the price of Bitcoin abruptly dropped to as low as $3,600 across major exchanges.
Warren Buffett praises stocks Dollar-cost averaging
Published on Nov 1, 2020
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.