???? Bitcoin DCA: From Bull to Bear and Back! A Hilarious 4-Year Crypto Coaster????

Hey there, Bitcoiners and Michael Saylor (I know you're reading this)!

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Buckle up, because I've got a wild tale from the crypto front lines. Our hero? An investor who decided to ride the Bitcoin rollercoaster with a strategy as steady as a rock: Dollar-Cost Averaging (DCA). That's right, every week, come bull or bear, our DCA daredevil dropped $500 into Bitcoin from the beginning of 2020 to the end of 2023. Here’s the scoop, with all Bitcoin prices sourced from CoinMarketCap's weekly historical data. Let's dive into this crypto saga from 2020 through 2023, complete with market mood swings and a complete four-year cycle!

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2020: The Year of the Bull ????

• Total Bitcoins bought: 2.5743 BTC
• Bitcoin price at end of 2020: $32,193.30
• Total amount invested in 2020: $26,000 (52 weeks × $500)
• Total value of Bitcoin at end of 2020: $82,876.32
• Profit/Loss: A whopping profit of $56,876.32
• Profit in %: 218.76% (To the moon! ????)

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2021: Still Bullish, but Hold On! ????????

• Total Bitcoins bought in 2021: 0.5707 BTC
• Bitcoin price at the end of 2021: $47,738.00
• Total amount invested in 2021: $26,000
• Total value of Bitcoin at the end of 2021: $27,242.88
• Profit/Loss for 2021: A modest profit of $1,242.88
• Percentage Profit/Loss for 2021 only: 4.78% (Not bad, but where's my Lambo?)

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2021 Cumulative (2020 + 2021):

• Total Bitcoins held by end of 2021: 3.1450 BTC
• Total value of Bitcoin at end of 2021: $150,197.61
• Profit/Loss: A nifty profit of $98,197.61
• Percentage Profit/Loss: 188.84% (DCA for the win!)

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2022: Welcome to the Bear's Den ????

• Total Bitcoins bought in 2022: 1.0552 BTC
• Bitcoin price at the end of 2022: $16,537.40
• Total amount invested in 2022: $26,000
• Total value of Bitcoin at the end of 2022: $17,450.45
• Profit/Loss for 2022: A grizzly loss of $8,549.55
• Percentage Profit/Loss for 2022 only: -32.88% (Ouch, that bear bites!)

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2022 Cumulative (2020 - 2022):

• Total Bitcoins held by end of 2022: 4.2002 BTC
• Total value of Bitcoin at end of 2022: $69,457.58
• Profit/Loss: A loss of $8,542.42
• Percentage Profit/Loss: -10.95% (Hang in there, buddy!)

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2023: Accumulation Station ????

• Total Bitcoins bought in 2023: 0.9321 BTC
• Bitcoin price at the end of 2023: $42,639.20
• Total amount invested in 2023: $26,000
• Total value of Bitcoin at the end of 2023: $39,745.11
• Profit/Loss for 2023: A sweet profit of $13,745.11
• Percentage Profit/Loss for 2023 only: 52.87% (Back on track!)

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2023 Cumulative (2020 - 2023):

• Total Bitcoins held by end of 2023: 5.1323 BTC
• Total value of Bitcoin at end of 2023: $218,884.04
• Profit/Loss: A fantastic profit of $114,884.04
• Percentage Profit/Loss: 110.46% (DCA ftw!)

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Through the bull runs of 2020/21, the bear hug of 2022, and the accumulation party of 2023, our DCA hero rode the waves of the notorious Bitcoin four-year cycle. A tale of resilience, patience, and a little bit of crypto magic with 110.46% in profits to show!

With this post, I've tried to demystify Dollar-Cost Averaging and its impact . Feel free to share this with your friends.

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Cheers and merry Christmas to you all!

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See you in 2024.