Scenario:Lets say you have a friend, call him buy-high Chuck, because he has a nag for buying crypto at the highest price every month. Say he invested 500 dollars split between bitcoin and ethereum every month since 2016. What would be the end result?Method:I used coinbase api so data was only available since 2016, Jan. For each month I find the highest price and bought 250 USD for BTC and ETH and held it until today's closing price.Results:the monthly results are really long and I will post a link in the comments.Here is the summary table though. ETH-USDBTC-USDTotal_earned$ 592,735.26 $ 263,770.86 median_by_month$ 1,803.15 $ 777.90 max_per_month$ 75,412.06 $ 21,885.08 max_per_month_ptc301658754min_per_month$ (116.35)$ (110.65)min_per_month_ptc-46.54-44.26In summary,A 500 dollar split in half between ETH / BTC, bought every month at its highest price, would total about ( $856,506.12) The most that was made with 250 dollar investment is (75,412) for ETH and (21,885) for BTC . This occurred on 2016-12 and 2016-03 respectively, while the lowest ( max loss), is (-116) dollars for ETH and (-110) dollars for BTC. Importantly the median return for a 250 dollar investment is 1,800 for ETH and 777 for BTC.Plot: total earned per 250 USD investmentsthis should be logarithmic but its would obscure the priceTLDR : buy-high Chuck who invested at the highest every month, 500 dollars split between ETH and BTC would had have about $856,506 USD in his portfolio. Not bad for someone who has a nag for buying at the highest.PS: let me know if you have an idea for some number crunching and I will see if I can do it.
Submitted January 30, 2022 at 02:12AM
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