With bitcoin wealth is being transferred specifically to savers. This happens because time in the market is the has the biggest impact with exponential returns. Over time your income has less and less impact on how much you can change your bitcoin stack, all that matter is whether you hold onto your bitcoin or not. This is why what might seem like mindless chants of HODL make soo much sense.
DCA is a great strategy, it moderates the psychological impact of the ups and down, which in turn calms the fear and the ego. It's a great way to get into bitcoin and help bitcoin over time, but it's impact on your stack does reduce over time if your income stays the same in fiat terms. Whats more significant is how you scale your lifestyle in relationship with your new found bitcoin wealth. If you keep your lifestyle the same, this has a lot of impact allowing you to never sell bitcoin. This
Not expanding your lifestyle means you never feel the wealth from bitcoin in your physical possessions. and this might be a bit too extreme of frugality for most ( although I do commend these hermits). You scale your lifestyle at a linear pace lower than
You can even scale your lifestyle at close to the same pace as bitcoin, exponentially, with bitcoin backed loans. This adds some risk and in the past has lead to loss of bitcoin at organisations such as Celcius and Blockfi, but we may have learnt from the excesses and mistakes of the past and these things seem to be coming back to popularity. Combined with DCA you can reduce risk and bring forward bitcoin returns from your DCA. Jack Mallers explains for his new loan product at Strike, that you can take one years salary out as bitcoin collateralised loan, spend it as you need whilst you continue to work and DCA your whole salary. As long as bitcoin goes up more than the interest charged then you are making a net gain over the year. Given the average return of bitcoin can hold up then the amount that you stack should cover the cost of the loan and then some. when the loan is due to be repaid after one year, you can take out another to cover it with the extra capital that you can gained in the process. This allows for exponential scaling of lifestyle.
Given DCA abilities
Lifestyle = collateralisable stack x ((average bitcoin return 50%)-(btc collateralised interest rate 14%) x years in the market).
Then ruffly lifestyle compounds rate up to 36% without reducing your stack.
If your more frugal than that then your stack should increase in fiat terms. If your also continuing the DCA then your stack should increase in bitcoin terms.
Of course I wouldn't recommend putting all your stack into this kind of scheme. So your normal stack is more than your collateralisable stack, I would think you might have a ratio of up to 10 to 1. There are risks involved so you minimise them this way and this is not investment advice. Some of these risks come from centralised trust and using only one loan organisation. There are other organisations such as SALT and decentralised loaning systems Debifi and Hodl Hodl Lend. If your getting tired of being a frugal hermit, if your HODL virtue is running dry, they might be worth checking out.
