Smash Buying Bitcoin Beats Dollar Cost Averaging?

Here are all the reasons I prefer smash buying Bitcoin, meaning just buying it right now with whatever money you have as compared to dollar cost averaging, which means setting up a recurring buy for the same amount of US dollars of Bitcoin every week, whether that's $10, $100, $1,000, whatever it is. I have always preferred smash buying Bitcoin, meaning buying it up front as opposed to waiting or buying it over time. And I want to walk you through the reasons why. So, first of all, when people are buying Bitcoin, they typically have an amount of money that they want to invest in Bitcoin upfront. Uh, now, if your only capital availability is over time, like, hey, you only have $50 a week to invest in Bitcoin, great. The decision is made for you. Just set up a recurring buy of $50 per week, which is called dollar cost averaging, DCA. So, great. If that is, if that is how your capital availability comes is so much per week or so much every two weeks, great. buy Bitcoin every so often works great. That's, you know, that's your best option. But if you have an amount of Bitcoin that you're willing to invest upfront in a lump sum, then I always prefer to invest the entirety of it upfront in Bitcoin. And here's the reason why. First of all, if you're going to dollar cost average, you immediately have to answer multiple other additional questions that are going to trip you up. For the first of which is over what time period are you going to dollar cost average? If you're going to invest $10,000, are you going to do it 1,000 a week for 10 weeks? Are you going to do it a thousand a month for 10 months? Are you going to do it $500, you know, whatever, a dollar a day for 10,000 days? Like, you just have to decide how you're going to do it, at what interval you're going to dollar cost average and um and the amounts. And then you also have to decide, are you going to set it up to buy daily or weekly or hourly or monthly or what is it? Now, most people dollar cost average weekly. But again, it's just a lot of decisions you have to make about whether you're going to do it daily, weekly, monthly, hourly, and then over what time period. And then you've got to decide, are you going to lump sum some of it? As in, are you going to invest $5,000 of your $10,000 upfront and then dollar cost average the remainder over a period of time? It's just a lot of questions that mess a lot of people up that keep them from ultimately investing in Bitcoin. The other downside, which I don't think I've ever talked about before, is in my opinion the goal with investing is to accumulate wealth as fast as possible and as much as possible so that you can improve the lives of yourself and your family. You can give charitably to your church, Christian missions, all the ways you can make the world a better place. The purpose of wealth accumulation in my case is to ultimately give it all away. To use it to advance God's kingdom, to redeem this world we live in as much as possible until the day that Jesus comes back, whenever that is. That's the point of wealth in my world. In addition to improving the the lives of myself and my family, making sure my kids can go to college, all that sort of stuff. Okay? So, that means I'm trying to accumulate as much Bitcoin as possible as fast as possible for all of those reasons. But as soon as you have a dollar cost averaging strategy, it enables you to put Bitcoin out of your mind. The problem is putting Bitcoin out of your mind is not a great strategy if you're trying to accumulate the maximum amount of Bitcoin. Because if somebody comes to me and says, "I have $10,000 to invest." And I say, "Invest 150th of it over the next 50 weeks, basically a year, and just forget about it." Then at the end of the year, they'll have invested $10,000. But if they invest that $10,000 upfront in Bitcoin, they now have enough of a stake in it that they're going to start paying attention. They're going to start reading about Bitcoin. They're going to about study start studying about Bitcoin. They're going to learn that, hey, in addition to that $10,000 of, you know, money in savings, I could also invest my Roth IRA in Bitcoin. I could also invest an IRA in Bitcoin. I could put my old 401k into a rollover IRA and invest that in Bitcoin. And Fidelity makes it very easy to do all of that. So if you lump some invest in Bitcoin, you have a lot more skin in the game up front and you have a lot more incentive to pay attention to Bitcoin to learn about Bitcoin and an incentive to invest more because at that point rather than just having the whole thing on autopilot where you don't have to worry about it, which again is a good thing if you don't want to have to worry about it. But if the goal is to accumulate as much as possible as quickly as possible, then having something on autopilot where you're buying $10 a week for 50 weeks, sure, at the end of the year, you've got $500 of Bitcoin, but also you only have $500 of Bitcoin. Uh whereas if you were investing as much capital as you could in Bitcoin, there's a chance you'd have $2,500 in Bitcoin or $10,000 in Bitcoin because if you invested the initial $500 upfront rather than $10 a week over 50 weeks, then the entire year you've got $500 in Bitcoin. You're thinking about Bitcoin. You're researching Bitcoin. You're probably going to put $1,000 more from your retirement fund in Bitcoin. You're probably going to buy another $500 over here or there. you're just going to end up with a lot more Bitcoin. So, I think as as much as dollar cost averaging is good for something like the stock market where it's not reasonable to expect everybody to go figure out what it is, how it works, and all of that. Money is different. Money actually does need to be understood. There is a benefit to your life to figure out how what money is, how it works, and how you can make it work for you. That is a huge upside for you personally to have that knowledge and skill. And I do not expect anybody to go figure out how the stock market works or the bond market works. And sure, if you're investing in the stock market, you can use a financial advisor. They're going to charge you 1% of your assets every single year regardless of whether your assets are up or down. Uh but you can kind of put it on autopilot or you can get some uh low expense ratio uh index funds, invest in the S&P 500 or whatever. Um, yeah, and for those, sure, dollar cost average, put them on autopilot, put it out of your mind because the benefit of an investment of like something like that is that it just rides forever. Um, but again, you're not trying to become a stock market investing expert. There actually is a benefit for you to understand how money works, why Bitcoin is good money, and how the future of finance will work when everything runs on Bitcoin. That is worth understanding, which means it's worth having front and center in your mind. So, as a result of that, in my experience, if somebody smash buys Bitcoin, let's call it $500 upfront instead of over time, they're paying a lot more attention to Bitcoin, they're a lot more likely to put more money in Bitcoin. And you don't have to make decisions about uh over what time period because it's simple. You buy as much as you can as soon as possible. And it's that simple. And if the price dips, you go find some way of earning more money or reallocating capital you have to buy more Bitcoin. So yeah, the price might dip, find more money to invest in Bitcoin. If it dips some more, find some additional money to invest in Bitcoin. Uh it is that simple. And it's just a lot cleaner in my experience as opposed to dollar cost averaging, especially when certain things like retirement funds do not make it easy to dollar cost average. If you're moving an old 401k into Bitcoin, it is not there is not a good way to move onetenth of it at a time over 10 weeks or something like that. Typically, it's all or nothing. you're either moving it over to a Fidelity crypto IRA or you're not. And it does not make any sense to move a tiny little bit of it every week for 52 weeks or something like that. So that's why I recommend smash buying Bitcoin. To summarize all of that, I think buying Bitcoin as soon as possible with as much capital as you have is a better way than dollar cost averaging. The only exception is if Bitcoin's price is so high that James Czech, my favorite Bitcoin analyst, is officially calling the market overheated. uh that has not happened in the last 3 years. But if that day came where even James Czech is saying this thing is so frothy and the price is so crazy that it's probably going to come back pretty strong down, then I would say okay. And if that happens, I will be all over Facebook telling you that it is a good time to dollar cost average. I started thinking about that when Bitcoin was above $120,000 uh over, you know, a month or two back. Uh but ultimately the indicators that we might be near a top were just not strong enough to be worth considering it at that time in my opinion. Uh but that doesn't mean we you know if we race from where we are today up to $220,000 in the course of a series of months. Yeah, it might be a little unsustainable in the near term at which point I might tell you that dollar cost averaging even though generally it's a worse strategy in that situation might be a slightly better strategy. But again, we're not there right now. And we're definitely not right there right now at $95,000 per coin, 25% below the all-time high. I think right where we are right now is a buy as much Bitcoin as you possibly can as fast as conceivably possible sort of time. Uh so that's why I prefer smash buying Bitcoin as much as possible rather than waiting. And uh that is what I'm doing. That is what I've done. And that's why I've accumulated as much Bitcoin as I have because I have not tried to gain the system. I haven't tried to do stupid stuff. And I'm literally just buying as much as I can whenever I have the cash to do it. And it is that simple.