The Power of Dollar Cost Averaging

Posted by Vince Poscente on Fri, Sep 16, 2022 @ 09:30 AM

The front end of uncertain business or economic trends (particularly with crypto) is predictable in one of two ways.
 
1st way? Use a magic crystal ball. Good luck!
 
2nd way? Use a Traffic Light without Assumptions.
 
🚥Green Lights = Certainty. Futurist • Daniel Burrus identifies two certainties, Linear & Cyclical.

1️⃣ Linear: Not Going Back. “Buy a smartphone and you’re not going back to a dumb phone.”
2️⃣ Cyclical: There are Cycles. An upmarket eventually goes down. A down market goes up.
 
🚥Yellow Lights = “clear the intersection.” You can assume there’s no vehicle running a red light. Caution is key. Certainty is in question.
 
🚥Red-lights = untenable uncertainty – Stop! Run the red light? You could pay a financial or physical price. Don’t proceed!
 
Enter my daughter Alex Poscente as Cofounder of Bits a mobile crypto-investment application that turns spare change into crypto. If a startup had optics of uncertainty - an application for investing in crypto on a smartphone would be squarely in the middle of

“Say what now?”

As a dad, without a crystal ball, here’s what’s certain.

🔐 Crypto has existed for 12+ years. It hasn’t gone away. It is linear.
🔐 Crypto has proven to be volatile with highs and lows. It’s cyclical.
 
Bits has added a level of ‘Green Light’ certainty to crypto investing.

➡️ “Dollar-cost averaging” is a proven financial strategy to minimize exposure and risk inherent in market volatility.
➡️ Bits removes the risky, one-time, all-in investment.
➡️ Users spend $ while spare change is rounded up to the dollar and saved in the app. Think Acorns but for crypto.
 
Will Bits and more important to me, Alex be okay? Are there any yellow or red lights?
 
Alex and Bits have several green lights. With the launch of the Bits app, we’ll know more if the trend was this academic to predict.
 
What linear or cyclical certainty will you bring to your predictions?
 
See CoinDesk
 
#crypto #BitsCrypto #futuretrends #investing #setbacktobreakthrough

Tags: Changing Times