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.