Yes, this is the story of Jack, a man of bad fortune! He did not invest in BTC for years, he knew that it could be interesting, but.... it is so volatile, it is dangerous, it is a messy thing that has no intrinsic value!!! But one day, with all the hype of the story of the crypto that will go to 100,000 usd, he could not resist anymore and bought 10,000 usd in the magic crypto. It was December 17, 2017 and he paid 19,870 dollars for the Fear Of Missing Out, the FOMO syndrome that is much stronger than any other logic reason. What is something a little short of 20,000 greenbacks, as it will go five times higher? He was on board, happy to be ready to make a lotta money!!!!
Since the very beginning it was clear that it would have not been a bed of roses: the market stalled at those hyperbolic levels and crashed down for years. Jack forgot his 10,000 bucks investment and he is back to life now, as the price of BTC is getting close to the level of his unlucky investment.
Well, you will say that he really picked the wrong card up, he was very unlucky to buy at the very highest price in the history of BTC.
Now, listen to this. Assuming that we bought BTC like Jack did, and paid the infamous 19,870 usd for it. The difference is that we had a plan in our mind: we decided to start an investment plan in instalments. We set up an amount of money that we decided was our daily unit and we started our plan. Our first investment was executed at the very top price in BTC history: we were Jack's fellow!
Then everyday we bought one more BTC unit at the closing price of the day that is the last price of that trading day. Every day we have been waiting for the end of the day, and bought one more unit. A unit can be fixed according to the investment power of each investor: whatever is suitable for the financial conditions of each person.
We performed all the simple calculations and the result is mesmerizing. Since Dec 17, 2017 we bought 1020 units up to November 28, 2020. We did not care about the level at all, we simply bought one unit every day. We have now 1020 Units at an average price of 8,419 usd (in this we did not consider commissions).
Believe it or not, starting our investment plan in the worst day of the history of the king of the cryptos, we more than doubled our investment!
We could have performed also other strategies, averaging the price with an instalment investment plan structured like this: assuming we can buy only 300 units, always starting on the worst day ever, we decide to buy one unit everyday by the end of the day. When we reach the 300 units, we sell the first one and we add a new one to our wallet. By doing so, our average price now would be around 10,000 usd. Less appealing, but still very good as we are trading around 18,000 usd!
The reason why this story is interesting is related to the fact that the price of the crypto now is skyrocketing again, the hype on BTC is back to the first pages of the newspapers and everybody is puzzling himself about the future, oscillating between fear and greed, like our good old Jack did three years ago.
Well, what can I say? The answer my friends is blowing in the... instalment investment plan. Let's choose our optimal unit, and start doing it now! Let time do the job for us: we keep buying. The only question left on the table is: are we really sure that BTC is here to stay and it will not disappear in the meta verse laughing back to all the crazy guys (like me) that were only silly believers?
