Oddbean new post about | logout
 Dollar Cost Averaging (DCA) vs MVRV 
: A 10-Year Bitcoin Investment Comparison
--------------------------------------------------------------------------
Investment Period : October 1, 2014 - June 1, 2024
--------------------------------------------------------------------------
Dollar Cost Averaging (DCA) Approach :
- Strategy: Invest $3 USD on the 1st day of each month, purchasing at
the opening price.
- Total Amount Invested : $351 USD
- BTC Acquired : 0.2698 BTC
- Total BTC Value : Approximately $16,608 USD
- Compound Interest Rate : 47.1%
--------------------------------------------------------------------------
MVRV Approach :
- Strategy : Purchase only when the MVRV ratio is below 1.0, investing
the same amount as DCA at the opening price.
- Note : During the period from November 1, 2023 to June 1, 2024,  
as MVRV was above 1.0, all funds were invested on June 1, 2024.
- Total Amount Invested : $351 USD
- BTC Acquired : 0.2433 BTC
- Total BTC Value : Approximately $14,978 USD
- Compound Interest Rate : 45.5%
--------------------------------------------------------------------------
Conclusion :
While Dollar Cost Averaging (DCA) involves a simple monthly 
investment approach, it yields better returns compared to 
the MVRV strategy over the specified period.
#Bitcoin #Nostr #Siamstr