HomeBITCOINRedditor Achieves 41% Return on Daily $5 Bitcoin Investment over 1 Year

Redditor Achieves 41% Return on Daily $5 Bitcoin Investment over 1 Year

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In a remarkable story of persistence and financial prudence, a Reddit user, u/Gorillahair2000, conducted a unique investment experiment to showcase the potential benefits of consistently investing small amounts into Bitcoin, known as dollar cost averaging.

Over the span of one year, the Redditor invested $5 per day into Bitcoin and carefully documented their progress.

At the end of the 365-day period, the Redditor had accumulated a total of 0.075 Bitcoin. The average purchase price was $24,108.58, while the current price of Bitcoin stood at $34,158.20.

Throughout the year, a total of $1,825.00 was invested, and the current value of the investment was $2,585.75, resulting in a net change of +41.68%.

The Redditor took into account the 0.5-1.0% spread on each purchase, ensuring that the gains remained after factoring in fees. They made their purchases using the popular Bitcoin Lightning wallet, Strike, and then transferred the Bitcoin to a hardware wallet, following industry best practices.

By transforming the daily expense equivalent to a Starbucks coffee into $2,500 in current value, or a $750 gain, the experiment showcases how even with a modest budget, investing in Bitcoin can generate significant returns. It also emphasizes the power of dollar-cost averaging, a strategy that involves consistently purchasing assets at fixed intervals, regardless of their price, to minimize the impact of market volatility.

This experiment further underscores Bitcoin’s advantages as a reliable form of currency that does not depreciate like traditional savings vehicles tied to inflationary fiat currencies.

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