I was wondering what the Compound Annual Growth Rate for Bitcoin currently is, and I wanted to use it to create forceasts of a few deviations of low, average and high growth, with the addition of the CAGR decreasing every 5 years by 10%.
With this I decided to use 0.1 BTC and a DCA of £100 Per Month over the course of a few years.
Additionally I wanted to use a low growth scenario, where the CAGR starts at 63.3% and drops by 10% every 5 years for all the table forecasts
•CAGR Decline:
•Years 0-5: 63.3%
•Years 5-10: 53.3%
•Years 10-15: 43.3%
•Years 15-20: 33.3%
•Years 20+: 23.3%
The CAGR data was used from curvo https://curvo.eu/backtest/en/market-index/bitcoin
⸻
DCA.
Forecast Table (£100/month DCA Contribution) Low, avg & high growth CAGR
| Year | Low Growth (CAGR: 63.3% → ↓10%) | Average Growth (CAGR: 88.7% → ↓10%) | High Growth (CAGR: 106.51% → ↓10%) |
|---|---|---|---|
| 0 (Now) | £1,200 (63.3%) | £1,200 ( 88.7%) | £1,200 ( 106.51%) |
| 5 | £13,567 ( 53.3%) | £22,651 ( 78.7%) | £38,253 (96.51% ) |
| 10 | £80,342 ( 43.3%) | £194,243 (68.7% ) | £695,631 ( 86.51%) |
| 15 | £330,541 (33.3% ) | £1,104,867 (58.7% ) | £7,483,812 ( 76.51%) |
| 20 | £1,007,276 ( 23.3%) | £3,678,343 (48.7% ) | £43,239,825 (66.51% ) |
⸻
0.1BTC
Forecast Table (0.1 BTC Investment at £6,500 Initial Value) Low, avg & high growth CAGR
| Year | Low Growth (CAGR: 63.3% → ↓10%) | Average Growth (CAGR: 88.7% → ↓10%) | High Growth (CAGR: 106.51% → ↓10%) |
|---|---|---|---|
| 0 (Now) | £6,500 (63.3%* ) | £6,500 (88.7% ) | £6,500 (106.51% ) |
| 5 | £44,542 ( 53.3%) | £80,036 (78.7% ) | £152,759 (96.51% ) |
| 10 | £251,462 (43.3% ) | £622,961 (68.7% ) | £2,394,036 (86.51% ) |
| 15 | £880,406 ( 33.3%) | £2,499,668 (58.7% ) | £22,545,440 (76.51% ) |
| 20 | £2,337,962 ( 23.3%) | £6,870,502 (48.7% ) | £119,053,317 (66.51% ) |
⸻
Combined portfolio of 0.1 & DCA.
Forecast Table (0.1 BTC + £100/month DCA, Low Growth)
| Year | 0.1 BTC Only | DCA Only (£100/month) | Total Portfolio |
|---|---|---|---|
| 0 (Now) | £6,500 | £1,200 | £7,700 |
| 5 | £27,438 | £13,567 | £41,005 |
| 10 | £161,291 | £80,342 | £241,633 |
| 15 | £663,640 | £330,541 | £994,181 |
| 20 | £2,020,978 | £1,007,276 | £3,028,254 |
From the above hypothetical and highly speculative outcome, it shows that even if you were to DCA £100 everymonth, the returns are still great, and if you were to have 0.1BTC combined, then in 20 years your total portfolio coulf be worth multiple millions.
This is of course all highly speculative and hypothetical, and only for entertainment use.
I hope you enjoyed this.
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