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.
Be well, make the most of this day. Thank you for reading!
Growing weary of the ads and divisiveness on mainstream social media? If so, why not try Hive? Click on this link to sign-up and join our growing global community.
Want to Keep Up with My Travels? Please subscribe to my YouTube channel.
Did you know that credit cards started to be activated in Venezuela last year? Since the 2016 economic crisis, people could not have credit cards. In fact, at this moment, not everyone can have a credit card. You have to do paperwork to be accepted. To be honest and with a lot of regret, I must say that I don't experiment much with money. In some study of those important universities there must be a study that says that women are more cautious than men with money. hahaha. I'm glad for your investment and your profits, my friend. Hug
I had no idea! If Venezuela was anything like America I bet that was a huge financial blow to a lot of families. Most of our middle class here in America exists because of easy credit. If credit cards and loans were taken away our middle class would crumble and the economy would probably collapse. I could see how whomever was responsible for the household budget would be more conservative about investing. Do women handle most of the household budgets there in Venezuela? That's how it was in our household when I was growing up. My dad would had his paycheck to my mom and she'd pay all the bills and budget the rest out for monthly expenses. If I was still making a regular income I would probably invest a small portion of my paycheck every payday into Bitcoin and treat it like a retirement account. After investing in a 401k for 23 years when I was working my office job I saw what a rip-off 401ks really are. I invested 12% of my salary into a 401k for 23 years and left with barely $100k in there. They rake you over the coals with hidden fees. I hope the week is going well! We're bracing for more snow. : (
More snow?! Unbelievable! Crazy weather.
Yes, in Venezuela the weight of the family economy falls on the shoulders of the woman, who is the one who controls the expenses. I will have to follow your advice and see how I can increase the money. Have a nice day, my friend
That's a really great idea! We get rewards back with our credit card now as well. It used to be specific things, but now it is just cash, so it would be easier to do something like this. I don't always collect ours on a regular basis, so I might have to start doing that if I decide to go this route!
Thanks my friend. I just feel like it's programmed in for BTC to be worth a lot more in the future than it is now—barring any huge catastrophes that is. This is so easy to do and although it takes monthly manual transfers the act of turning CC cashback into BTC is actually pretty rewarding.
I really agree with you. I think there is a lot of room to move here and a lot of people seem to think alts are pretty much dead, so BTC seems to be the clear choice.
I really don't see how alts will recover, unfortunately. That said, I worry about having all my crypto eggs in one basket though, I'm not going to lie. I invested a little into a BTC hydro-mining operation in WV also but aside from that I'm diversifying into other things outside of crypto.
I have my traditional investments that I don't plan on changing any time soon. Crypto is more of a side thing for me and if it pans out then cool. If not then I should still be okay.
Good. I figured you were well-diversified.
That is a pretty cool idea, I used to do that with BlockFi card since that was automatic. I assume you have to do this manually or have you found an automated way to convert rewards into BTC? Also, while the image shows the performance in the last month, what was the total performance since you have started doing this?
Thanks! Yeah, I've had some of those crypto rewards cards in the past too. As far as I know there's nothing currently that allows you to transfer rewards from legacy cards into BTC. It seems like it's a huge opportunity for someone who could figure out how to build something like that. I wish I could more accurately track. The wallet is showing total 3 month performance to be 20,924% but that obviously isn't right. I could pretty easily figure that out doing a manual calc. I'll do that today and report back.
According to my calcs I'm down about 7%, overall, based on today's BTC price.
That makes sense, but I would expect that long term this will be a good investment.
I think so too.
Hello, dear friend @ericvancewalton
You had a brilliant idea with very good results. I hope this return continues over time.
I'll start a campaign to find out if there's something similar here in Argentina.
Have a great afternoon.
Thanks my friend! I hope the week is treating you well!
Medium was the platform I had met before HIVE (Steemit back then), but somehow I didn't register it and I didn't know it had monetization.
So far Medium isn't working out very well for me. After a little over a week on the platform I've published around ten posts and have made $.29. My goal for 2025 will be to break even after the $50 annual fee they charged me to monetize. It looks like I have my work cut out for me. : )
HIVE is better then :)
I remember reading that post, Eric. Fabulous and painless way to save for a rainy day, what a great start! We also get rewards with our cheque accounts, but mine is not that great. I should let it build up though and look at doing something similar. Unfortunately, our taxman now has a specialized unit enforcing income tax compliance for crypto transactions! Very likely not looking at small investors though. The government squanders our tax money, and now are looking at every avenue to bring in revenue!
I went back to try to find it but had a tough time. I thought it was around the end of the year but I might have been wrong about that. That's great that you get cash rewards on your checking account. I don't think we have anything like that here in the US. That's horrible that they're targeting crypto transactions. That's the direction America was headed before the last election but the US seems to be becoming far more crypto-friendly under Trump. It's insane how greedy these corrupt governments have become.
Excellent investment strategy, @ericvancewalton, that certainly stands the test of time. I do not know where I would be without a disciplined DCA approach. If there is any other asset class, in which DCA makes more sense, I am unaware of it.
Great, long-term objective, as well.
If you want to add your HIVE endeavors to your list of potential ideas for expanding your initiative into other income streams, here is a recent post on an option you may wish to consider.
Watching your quarterly progress will be something to keep an eye on. All the best, along the way! 🤝
Thanks! Same here. I went down the statistical rabbit hole and learned, technically, there are more up-markets than down-markets but I think getting into the habit of investing in regular intervals (DCA) works to the advantage of almost everyone. Thanks for the link. Wow, that sounds super interesting. How's that working out for you so far?
Great question, @ericvancewalton. As charitably while still honestly as I can answer, at the moment, I would say a touch choppy, but I would quickly add that is typical of what we might reasonably expect from a startup.
How are issues encountered being reported? How is the communication going on the progress being made in addressing them? How are the community leaders doing in keeping all apprised of the big picture?
Well, a roller coast ride work-in-progress? 🤔😒🤷♂️😉 Hahaha ...
Unlike what I wrote about here, at least I found this follow-up encouragement earlier:
Encouraging due to the lag of several days. Now, when these first earned Sats will appear in my V4v.app wallet? 🤷♂️
I was in awe reading the start of this!
Two fluffing grand from cash back in three months! It had me scratching my head thinking just how much you were actually spending. Then I read ...
It is great to DCA into Bitcoin. It is the one coin that really is worthy of being the big daddy of crypto.
Three months is a great interval period to see how your bags are growing!
Yeah, unfortunately (or hopefully fortunately for my future self) we had to buy a new furnace, air conditioner, and hot water heater immediately after we moved in. This project helped to take the sting out of those unpleasant surprises a little. : )
I totally agree. There's a lot of noise out there from crypto influencers and big BTC stakeholders spreading extreme hopium but I don't see how we don't reach $1M per coin eventually. It's anyone's best guess on how long that will take or if some catastrophe will happen to derail it but any investment is a risk. I trust BTC more than anything else at this point. Thanks! I'll make this a quarterly series.
Cash backs are great especially if you double or triple up on them.
Yeah BTC is the only crypto I trust to be honest. There is far too much Hopium but you are right, one day it will hit a million.
I know how to get in on the Ground Floor of U.S. Crypto Coinage... USCC will be Stable, and 100% backed by U.S. Gold Coinage... USCC will make the United States, the "Crypto Capital of the World"... I have many posts that mention USCC...
Cool, I'll check those out!
Very brilliant idea. Good evening my brother.
Thanks! Good day to you!
Reflecting on this post, it is important to be prepared for rainy days and consider saving strategies for the future...best regards @ericvancewalton
#hive #posh
#hive
Congratulations @ericvancewalton! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 72000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP