How To Save In Bitcoin DCA

How To Save Bitcoin: DCA Is The Way

Saving money used to be a simple and standard practice – park your cash in a bank account and watch it grow. The 1926 book “The Richest Man in Babylon” famously advocates putting aside just 10% of your income to start building wealth. For a variety of reasons, the wisdom of saving is slipping away from our culture.

For one, saving doesn’t feel like the path to success anymore. Teenagers looking at college tuition costs watch their peers use TikTok to shoot from penniless to multi-millionaire status. Corporate employees fighting for a raise see online chat startups claiming $1 billion valuations before their app even releases publicly. Kids who skipped the playground to buy pictures of penguins suddenly find themselves richer than their parents. In this world, what good is saving and diligently deploying 10% of my income for a healthy return? It sure seems like life is a lottery these days, not a fair uphill climb.

Second, spending receives praise from every angle. Decades of overwhelming advertising and economics education also bombard us with the message that spending is good, not just for our own well-being but for society as a whole. Spending keeps the economic engine running, they tell us — and every penny counts.

Finally, the younger generations just have less to save. According to Pew Research, millennials have less wealth than prior generations did at equivalent ages and also carry much more student debt, dragging on their ability to save even when wages are nominally rising. Even with wages rising, most of that is only seen by the college educated, with those not holding a degree having lower income than past generations – going back to the early boomers.

Saving behavior saw one “saving grace” in recent times: the COVID pandemic and government reactions. Forced lockdowns and business closures coincided with a massive spike in the personal savings rate, unprecedented in recent times.

While this is likely to be temporary (nod to Jerome Powell), this extra cash has left many Americans wondering – what should I do with this cash?

We used to have a clear choice.

The Appeal Of The Savings Account

After the last major world crisis — marked by two back-to-back world wars and a deep economic depression in between — stability was a highly-sought luxury. Booming populations of workers wanted to raise families, build businesses, and ensure the security of their futures.

The humble savings account provided a safe place to store wealth and a simple means to grow it steadily over one’s working years. People could focus on their career or business, and not have to worry about where to put their money – it could go right in the savings account.

In countries with strong and stable institutions, like the United States, savings account “yields” (growth on the dollars in the account) generally trended up from the…