We’ve all heard of the
A $1 investment over 37 weeks (between January 1 to September 12) would result in $37 worth of Bitcoin bought, or a total of 0.0042 BTC. The profit at a simple average purchase price of $9.032 against the trading price of $10,300 would be $5.24 for the $37 investment. That puts the profit margin at 14 percent. That was for $1 of investment. Similarly, if we’d increased the $1 to $50, it would result in a profit of $262, for a $150 investment per week, the profit would be $785.9, so on and so forth.
It should be noted that the profit would decrease when incorporating the fees in purchasing the Bitcoin. Exchange fees like maker/take order fees and withdrawal fee, as week as the Bitcoin network fee during transfers would eat away at the investment and the profit but it inevitably decreases with high investment.
Such a simple strategy would, even in the current market with last week’s drop, still give a positive return. Yet, so few people do this.
With every market going down from currency, to equity to commodity, it would seem prudent to not only have a hedge against the traditional system but have a hedge that is going up in value. By the looks of it, that asset is Bitcoin.