Bitcoin’s Worst Case Scenario is Still a Profitable Investment
- Accumulating bitcoin right from the peak to the bottom puts the current value at $1,380 versus $1,300 in cost
- In an interesting analysis shared by @Pladizow, even the worst case scenario of buying bitcoin results in being green after all.
Per this analysis, $100 has been used to buy Bitcoin at monthly highs. This buying frenzy starts right at the peak that is December 2017 when Bitcoin hit $20,000 during the last bull cycle.
From here, onwards every month for 13 months, $100 US Dollars are being used to buy Bitcoin till the lowest point that is when we hit yearly low in December 2018 at $3,150.
Wrangled this dataset this morning. One of my favorite charts I've put together in a long time. Excited to share results: pic.twitter.com/ZnAtwFL3Xj
— nic carter (@nic__carter) June 16, 2019
The period within which the Bitcoins has been purchased has been a brutal winter that saw the leading cryptocurrency losing about 84 percent of its value.
This buying spree resulted in accumulating a total of 0.14982049 BTC that costs $1,300 by putting in $100 for straight 13 months. At about $9,200 per BTC now, this puts the current value at $1,380.
Bitcoin Dollar Cost Average – Worst case scenario?
Buy $100 at the monthly high stating at the peak in Dec 2017 and end at the low in Dec 2018.
Current value: $1,380 pic.twitter.com/crB5hCApvI
— Nunya Bizniz (@Pladizow) June 16, 2019
What about on a Weekly Basis?
In a similar but with different buying rate, Bitcoin enthusiast Simon Turner does this “Dollar Cost Averaging” on a weekly basis. Per his experiment, he uses $100 per week to buy Bitcoin that result in the US dollar deposit of $5,100.00. This spree started in the last week of July 2018.
As per Coinbase USD spot price, by the 51st week that is on June 11th, 2019, a total of 0.98787721 BTC have been accumulated with an average BTC buy price being $5,162.58.
Now at current approximately $9,100 level, d a profit of 77.99 percent amounting $3,977 has been earned.
This comes to show that despite the brutal crypto winter where bitcoin crashed, the world’s top cryptocurrency still comes out as a winner which marks for a must have in one’s investment portfolio.
Bitcoin is turning even more bullish as we enter the next bull cycle while approaching the third reward halving in May 2020. We have already surged 149 percent till date in 2019 and aiming to put $20,000 way behind with a new peak this time.
$BTCUSD, 1W, log scale:
– ascending channel with multiple support/resistance points
– breakout above the channel
– test of the previous resistance of the channel that became a support
– a bullish engulfing candle on this test
– a parabolic rise after that.
Bullish.$BTC #bitcoin pic.twitter.com/DXyFyfqbkc
— CryptoHamster (@CryptoHamsterIO) June 16, 2019
We have just started to rise and have a long way ahead. But with BTC/USD price moving so fast upwards, we might get the opportunity to buy the dip by seeing a healthy replacement, though at this point it is hard to know what level that would be, only to continue on the parabolic rise.