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
에 게시 됨 Nov 1, 2020
by Cointele | 에 게시 됨 Coinage
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