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frb | 4 years ago

While I'm doing the same on a small scale for fun, I think it's important to mention that this is not some magic feature of Bitcoin, but just a speculative effect that works with any kind of asset, as long as its value grows disproportionally to the value of the currency you bought it in.

This only works as long as the price of Bitcoin (and other crypto currencies) "goes up". If it stagnates or drops, you can lose money, even more than the current inflation.

E.g. Calculating the Dollar Cost Average for the last year would show that you probably would have lost money, with a negative ROI of -11%.

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