Wanting To Know How Does the DCA Strategy Work With Bitcoin? Michael J. Saylor Is Your Guide
When you believe in Bitcoin, you buy it no matter what.
|Sylvain Saurel||Feb 24|
The price of Bitcoin is currently going through a phase of significant volatility. After reaching a new ATH of $58.3K on February 21, 2021, the Bitcoin price fell just above $45K on February 23, 2021. A rebound has taken place which allows the price of Bitcoin to be around $50K at the time of writing.
I am constantly explaining that to fully enjoy Bitcoin, you need to focus on what you can control.
The price of Bitcoin in the short term is clearly not something you should focus on. Bitcoin's phenomenal potential for the future is something much more tangible. Nothing is guaranteed, but you can feel that Bitcoin is a monetary revolution that will change the world of the future for the better.
Under these conditions, you need to deepen your knowledge of Bitcoin to reach a sufficient level of confidence in its revolution. Once you have reached this level of confidence in Bitcoin, you will be able to define your own plan and stick to it no matter what happens.
In the world of Bitcoin, this means applying the simplest strategy. Luckily, it is also the best. It consists of 4 steps:
Buy Bitcoin automatically with a Dollar-Cost Averaging (DCA) approach. Many applications exist for this.
Program the automatic sending of these BTC to your hardware wallet using one of the applications you will buy.
HODL Bitcoin no matter what.
Iterate from step 1.
Since the creation of Bitcoin, this strategy has been profitable more than 99.5% of the time. Those who do not follow it and try to reinvent the wheel are therefore making a fundamental mistake. Bitcoin is first and foremost an accumulation game. Anyone can benefit from it as long as they have confidence in its revolution.
I repeat this constantly in the articles I've been writing for years now.
Yet, I always meet people who question this strategy, telling me that they have found better ways to get rich fast. I always tell them the same thing:
Bitcoin is about power, not money.
Wanting to get rich fast is the best way to lose a lot of money.
It doesn't seem to convince them, and they keep making the same mistakes over and over again. After all, I'm just one Bitcoiner among many. Why would they listen to me? Everyone has to make their own mistakes in life.
If you don't listen to my advice and still question the DCA strategy, I think you should be interested in a certain Michael J. Saylor who has been conscientiously implementing this strategy since August 2020. MicroStrategy's CEO will likely be elected CEO of the decade in 2030 when Bitcoin reaches the gold market cap.
In the meantime, Michael J. Saylor is sticking to his DCA plan no matter what happens.
On February 24, 2021, he announced a new purchase of BTC. MicroStrategy used the $1.026B raised through a debt issue to purchase 19,452 BTC:
Michael J. Saylor has taken advantage of the Bitcoin correction in the last few hours to accumulate more BTC. At the time of writing, MicroStrategy holds 90,531 BTC purchased at an average price of $23,985 per BTC. This represents an investment of $2.171B that is already worth over $4.526B.
The DCA strategy followed by Michael J. Saylor already represents a potential +110% capital gain for MicroStrategy.
Most interesting is that Michael J. Saylor buys Bitcoin no matter what happens. The current correction could go much lower in the coming days. However, Michael J. Saylor is sticking to his plan. This is how the DCA strategy should be applied.
People who are reluctant to buy Bitcoin because they think it might get even more expensive never buy Bitcoin in the end. Taking action is the key to enjoying Bitcoin.
Michael J. Saylor is the perfect guide in this area. Judge by the regularity of his purchases in BTC:
Since entering the world of Bitcoin in August 2020, Michael J. Saylor has purchased Bitcoin 7 times. This is the equivalent of one purchase of BTC per month. The quantity purchased varies, but the willingness to buy BTC is always the same.
Some consider Michael J. Saylor's strategy risky. His answer is perfect I find. He takes up a quote from Warren Buffett:
“Risk comes from not knowing what you're doing.”
Michael J. Saylor knows exactly what he is doing with Bitcoin. From that point of view, he doesn't take any risks. The risk would be not to buy Bitcoin when he sees a phenomenal potential in this monetary network that is about to revolutionize the world.
The last thing to observe is that Michael J. Saylor's purchases are made regardless of the price of Bitcoin:
Michael J. Saylor puts his words into action. He constantly repeats that with a price of $50K, Bitcoin is totally undervalued today. He proves it with this purchase of nearly 20K BTC at an average price of $52,765 per BTC.
MicroStrategy now owns 90,531 BTC. This number is expected to grow in the coming weeks and months because Michael J. Saylor has realized that when you are a Bitcoin HODLer, there is only one number that matters: the number of BTC you HODL.
If you were looking for a guide to applying the DCA strategy with Bitcoin, I think you found it in the person of Michael J. Saylor.
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