Monday, 10 February 2020

Not owning BTC vs. owning 5% BTC with "rebalancing" vs. buy and hold BTC, long term.

In each case, start with $10,000. Compare net worth from Feb 1, 2013 to Feb 1, 2020.

Case 1: Owning stocks (DJIA) and no Bitcoin. 2020-02-01 net worth: $20,431. Nice job, you've doubled your net worth.

Case 2: Buy 5% BTC, keep 95% in DJIA, rebalance each Feb 1. 2020-02-01 net worth: $82,646. Much better than owning no Bitcoin.

Case 3: Buy 5% BTC ($500, or 24.15 BTC) and then wait. (No rebalancing.) 2020-02-01 net worth: $245,158

This is why I don't rebalance.

submitted by /u/Mark_Bear
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