Bitcoin Three Year DCA Outperforms Gold By a Long Shot
Summary
- Investing $10 a day for three years into Bitcoin would’ve yielded a 50.6% upside.
- Investing the same amount in gold would’ve yielded a 27.9% upside.
Despite Bitcoin’s notorious image on Wall Street, dollar-cost averaging (DCA) into Bitcoin would’ve yielded far more attractive returns than investing in gold, reaffirming Bitcoin’s status as one of the best-performing assets.
A 10$ investment daily for three years would constitute a total investment of $10,960. An investment in Bitcoin would’ve appreciated 50.62%, bringing the total value to $16,508. However, the same investment in gold would’ve yielded 27.96%, bringing the overall position value to $14,024.
Dollar-cost averaging allows investors to alleviate some of the risks involved in investing in Bitcoin by minimizing the effects of volatility. Furthermore, throughout the three years, dollar-cost averaging (DCA) into gold would’ve appreciated at a relatively linear pace, while dollar-cost averaging into Bitcoin would’ve been far more volatile.
Is Bitcoin Digital Gold?
Both Bitcoin and gold have seen a surge in interest amid the economic fallout due to coronavirus. With looming concerns over a potential rise in inflation, many investors are looking to alternative assets that act as a hedge against hyperinflation.
Bitcoin specifically has also seen an influx of new institutional money, evident by Grayscale’s Bitcoin Trust, which is setting new highs for assets-under-management. Grayscale alone bought over 18,000 Bitcoins since the Bitcoin halving event last month.
Disclaimer: Content displayed on thecryptoassociate.com is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or represent any third-party links including advertisements. The Crypto Associate participates in affiliate marketing. Read the full disclaimer
