Dollar cost averaging (DCA) into Bitcoin

I recently listened to some podcast episodes where Preston Pysh and Michael J. Saylor were interviewed separately but asked similar questions:

What should the average person do to invest? Should they invest in Bitcoin?

Both of them came to the same fundamental principle of investing and accumulating wealth: dollar-cost averaging (DCA) into Bitcoin. This struck me, because despite their financial success, neither of them suggested trying to time the market, waiting on the sidelines, or spending time analysing market trends. They treat Bitcoin as an investment and consider it one of the asset classes they invest in.

If you buy some Bitcoin now and the price goes down, you'll benefit from future lower-cost purchases. However, if prices continue to fall, your portfolio balance will also decline. This is the risk of the DCA strategy—you’re not timing the market, and your only assumption is that Bitcoin will go up in the long term. That’s why it's important to read and learn about Bitcoin before investing in it.

As with all investments, you don't truly "lose or win" until you sell your position. The outcome of your investment is unrealised until you actually sell your Bitcoin. If the price goes down, the key questions become: How long can you hold it without selling? Can you take advantage of the downturn? This is why it's crucial not to risk all your money and to maintain a stable income. Are you playing a short-term game or a long-term one?

Bitcoin is very volatile. It can be bought and sold outside of traditional market hours—such as on a Saturday morning—when people may panic and sell, speculating that the price will drop. Unlike shares, Bitcoin doesn’t have a market closing period.

DCA offers a low-effort way to build investment discipline. As a result, you're less likely to act emotionally or stress about timing the market. However, transaction costs may be higher due to the number of trades. It’s worth researching which platforms offer secure services with low transaction fees.

This aligns with the F.I. (Financial Independence) principle of living within your means and reinvesting your surplus. Instead of buying more ETFs or paying down your mortgage, you might choose to buy more Bitcoin. You could also view it as holding Bitcoin instead of U.S. or Australian dollars. In this way, you’re hedging against inflation caused by government money printing. There’s a limited supply of Bitcoin, and no one can create more of it.

As a quick analysis, I asked ChatGPT what would happen if someone DCA’d $100 a month into Bitcoin from June 2022 to June 2025. Here were the results:

• Total Invested: $3,600

• Portfolio Value (as of June 26, 2025): $11,406.59

• Total Gain: $7,806.59

• Return on Investment (ROI): +217%

  
  

A 217% ROI is impressive. However, we should keep in mind that Bitcoin prices were relatively lower between June 2023 and January 2024. There’s also a possibility that ChatGPT’s estimate could be inaccurate.

Ultimately, building wealth comes down to continuing to add value to the world, which brings income and allows you to grow your portfolio. Can I—or anyone—guarantee that Bitcoin will go up? No. That’s why you should always do your own research.