Hi guys! I’ve been buying and holding Bitcoin for almost 3 years now. I manage my Bitcoin investments in Excel and I really like to play around and analyze the data, since I’m currently studying statistical analysis. So I want to show you some interesting analysis and I hope it inspire you to do something similar!
A few things before starting:
• All the data that you’ll see here is with the price of 1 Bitcoin equals to $ 49.000,00;
• Everything is measured in percentage for privacy reasons;
• In my country we use comma for the decimal separator and use period to separate groups of thousands;
• English is not my main language, so it could have some misspelling;
Let’s begin with the amount of money that I invested and the average price per Bitcoin in each year:
In 2019 is where everything started, Bitcoin was my first investment ever. It only accounts for 4% of all the money with an average price of $ 6.345,69. In 2020 is when the pandemic hit and changed my perception, things started to click on my mind, understanding what money is, the true nature of Bitcoin and how it would impact my life and the life of others. It’s 4x more money than 2019, accounting for 16% of all the money at an average price of $ 14.783,91. Now 2021 I went completely bananas, not only I sold a lot of things that I didn’t needed (like my gaming chair and guitar) to buy more Bitcoin, I also got a fix job, meaning more money flowing into Bitcoin. It’s 5x more money than 2020 accounting for 80% of all the money at an average price of $ 40.962,99. Now to the juicy stuff, profit:
As expected, because 2019 has the lowest avg. price it has the biggest appreciation in price currently at 672%, followed by 2020 with 232%, and 2021 with only 20%. But let’s join both charts to get the full picture and compare those gains proportionally with the money invested:
Now things are starting to look beautiful, isn’t it? The most interesting data is the % in yellow above the columns: it’s the total amount of Bitcoin bought in each year. So even though 2019 I only invested 4% of my money, its responsible for 18% of all my Bitcoin! On the contrary, in 2021 I invested 80% of my money but it represents 53%. Adding the 2019 and 2020 equals to 47%. So, with only 20% of my money invested it represents almost half of my BTC! Another interesting chart to analyze is if you pick only the profits of each year and how much it is responsible for and compare it.
Interestingly 2020 has the highest profit of all at 45%, followed by 2019 at 35% and 2021 at 20%. But of course, if the Bitcoin price keeps increasing, the % profits in 2021 will grow larger and surpass the other years because it has more money invested.
To finish this analysis, in total I bought at an avg. price of $27.153,88 per Bitcoin currently at 80,5% in profit as shown here:
In conclusion, if there’s one takeaway I believe this is the one: “Time in the market beats timing the market.” I never traded BTC, for me trading is astrology of investment. You can trade for years looking at price and charts patterns and learn nothing about Bitcoin. Patience is key, I holded for only 3 years but want to hold for much longer. I don’t even consider Bitcoin as an investment anymore, is more like saving account where I store my wealth. I hope you liked this analysis!
TL:DR: The best time to buy BTC was 10 years ago, the second time is today. Keep stacking sats!