Around the turn of the new year I mentioned in one of my blogs that I was going to start flipping my credit card cash rewards and begin dollar cost averaging those rewards into bitcoin. I figured right around the three month mark might be a good time to report back on how it’s going.
For those of you who missed that first post…
I had mentioned that I use rewards credit cards to purchase absolutely everything and I pay them off in full at the end of the month. The cards I earn the most cash back rewards on are my Chase Sapphire and Apple Card so I try to primarily use those two to maximize my cash back.
After investing for more than three decades I knew the power of dollar cost averaging into the traditional financial markets and wanted to put the magic of it to the test. Since Bitcoin has scarcity baked into it and, theoretically, will continue to grow over time I could think of no better asset class to invest in. I discovered a dusty old crypto wallet that I hadn’t used in years to use as an exclusive repository for this little experiment and was off to the races.
What I’ve discovered in a little over three months didn't disappoint. Drumroll please....
So far, the wallet balance is a tad over $2k. That even surprised me. The balance would be significantly more than that if Bitcoin hadn’t taken its recent dive. Dollar cost averaging is, indeed, powerful and still stands the test of time.
Granted, we’ve just moved into a new house so there were a few very big new-home-related purchases so I can’t say the results of the first quarter of the experiment will be something that is sustainable. I’ve also started selling some of my old clothes on eBay and will flip the proceeds of those sales into Bitcoin as well but so far those eBay sales have only contributed $28 to the BTC/DCA fund.
Maybe I’ll also funnel my earnings from writing on the Medium platform as well. I’ve made a whopping $.29 on Medium after nearly a solid week of monetization. That will, at least, pay for a portion of the BTC transaction fees I guess. Needless to say, this foray into Medium has only given me a greater appreciation for Hive.
I’ll be reporting back on this little DCA/BTC experiment about once a quarter. I’m viewing this wallet as if it were a back-up retirement account so I don’t plan to sell anything in that particular wallet for at least a decade so it’ll be fun to watch it grow.
The best part of all of this is how easy and painless it is to do. Previously the credit card rewards were just deposited into a bank account and were gobbled up by monthly expenses. I encourage you all to try it yourself—if you do please let me know how it goes for you. It’s always good to have something saved for a rainy day. This makes so much more sense to me than the current trend of gambling on meme coins or risky leveraged trades. I certainly sleep better at night.
~Eric Vance Walton~
Be well, make the most of this day. Thank you for reading!
(Gif sourced from Giphy.com)
