Dollar Cost Average (DCA)

Dollar Cost Averaging (DCA) is a strategy where you invest a fixed amount of money at regular intervals (e.g., weekly or monthly), regardless of the asset’s price. Instead of trying to time the market, you buy the same amount at each interval and benefit from buying the dips, the rips, and everything between. Over time if we expect the price of Bitcoin to continue moving upward, the net result is averaging out the cost basis and realizing the long-term upside appreciation.

In This Model: Key in the dollar amount used to purchase BTC at each interval, the number of intervals each year (12 for monthly, 52 for weekly, 26 for bi-weekly, etc), the total number of years in the DCA timeframe, and an estimate for YoY inflation. Then set the Bitcoin CAGR to your desired metric to compare the results.