Let's examine how the dollar-cost averaging (DCA) strategy worked for Bitcoin with regular $50 purchases. The analysis covers buys made on the 1st of each month from January 2016 through December 2025, totaling 120 contributions amounting to $6,000. As a result of this DCA, the portfolio accumulated approximately 0.43 bitcoin, which at the current price near $87,000 is valued around $37,000–38,000.
What is the DCA Strategy?
Dollar-cost averaging (DCA) involves making regular, fixed-dollar investments into an asset regardless of its price. This approach reduces the impact of short-term volatility since purchases occur at both high and low prices, smoothing out the average entry price. DCA is often used for long-term goals where discipline and minimizing market timing errors are important.
- Definition: regular, identical purchases at fixed intervals.
- Advantages: disciplined investing and reduced risk of poor timing.
- Mechanics: buying a fixed amount regardless of current price.
Bitcoin Investment Analysis Using DCA
In our scenario, an investor contributed $50 monthly into Bitcoin from January 2016 through December 2025, totaling $6,000. These regular purchases resulted in accumulating about 0.43 bitcoin and a capital increase of more than six times the invested amount. At the current price near $87,000, 0.43 BTC is valued roughly between $37,000 and $38,000; for more on long-term holder behavior, see long-term holder volumes.
- Total investment amount: $6,000.
- Bitcoin accumulated: approximately 0.43 BTC.
- Current estimated portfolio value: $37,000–38,000.
- Investment growth: over sixfold increase.
Comparison with Gold Investments
Applying the same $50 monthly purchase method to gold yields a different outcome: a less dramatic but more stable portfolio growth. Over the same period, the investor accumulated about 3.4 ounces of gold, with a current market value estimated between $14,500 and $15,000. Thus, the $6,000 invested in gold via DCA roughly doubled in value; additional price dynamics and seasonal changes are discussed in another review on 10-year changes.
- Total investment amount: $6,000.
- Gold accumulated: approximately 3.4 ounces.
- Current portfolio value: $14,500–15,000.
- Investment growth: about twofold increase.
Conclusions and Recommendations
According to this scenario, Bitcoin DCA significantly outperformed gold DCA in total returns over the period, albeit with greater price volatility. This illustrates that with identical regular contributions, final profits heavily depend on the chosen asset and its price dynamics. Meanwhile, DCA remains a disciplined accumulation method that doesn't require complex market timing.
Why This Matters
For miners with any number of devices, understanding the difference between mining profitability and investing in assets is crucial. DCA results show that long-term holding and regular purchases could have substantially increased a Bitcoin holder's capital, though this pertains to investment activities, not mining revenues. Miners, even with small equipment fleets, might use proceeds for periodic purchases or reinvestment, but such decisions depend on personal goals and liquidity.
Furthermore, the gold comparison highlights that higher returns come with greater price instability. When planning budgets, miners should consider that cryptocurrency investments differ in risk and liquidity from physical metals.
What to Do?
- Define your goal: accumulation, capital protection, or speculation—this influences your approach.
- Set a fixed budget for DCA and stick to it to avoid emotional decisions.
- Choose a reliable platform for regular purchases and secure storage for keys or wallets.
- Keep transaction records and monitor liquidity: the ability to quickly liquidate part of your position is important.
- Diversify: don’t keep all funds in one asset category if stability matters to you.
This is not investment advice.