Is there a “right” time to enter the market?🤔
Let's discuss based on an example:
Here is John. 🥷
John decided that he wanted to be financially independent by the time he retired and decided in December 2017 to invest his annual bonus ($5000) in Bitcoin every year.
🔹In December 2017, John bought 0.28 BTC at a price of $17,802.
2018: 1.41 BTC at $3,544
2019: 0.69 BTC at $7,153
2020: 0.21 BTC at $23,733
2021: 0.1 BTC at $48,626
2022: 0.29 BTC valued at $17,089.
In total today John has 2.98 BTC worth about $80,483 with $30,000 spent.
Now let's calculate what would have happened if John had done the same thing in May, when the market conditions were very different.
🔹May 2017: 3.1 BTC at $1,579
2018: 0.55 BTC at $9,052
2019: 0.62 BTC at $7,989
2020: 0.56 BTC at $8,912
2021: 0.1 BTC at $49,855
2022: 0.13 BTC at $36,573.
In total, with the investments in May, John has 5.06 BTC worth about $136,664 with $30,000 spent.
Bottom line?
Yes, John got different returns in different scenarios.
But the key point is that he achieved his goal in both cases – he multiplied his capital, regardless of market circumstances.
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