What Dollar Cost Averaging Bitcoin Actually Means for Australians
Quick Answer. Dollar cost averaging Bitcoin is the practice of investing a fixed AUD amount into BTC at a fixed interval, such as AUD 100 every week or AUD 500 every month, regardless of the current Bitcoin price. The strategy removes the need to time entries, smooths out the average buy price across market cycles, and has historically rewarded disciplined Australian investors who kept buying through both bull and bear markets.
The concept is deliberately simple: pick an amount you can afford to lose, pick a cadence you will actually stick to, and automate the buy. Most Australian crypto exchanges support direct debit for recurring BTC purchases, which removes the emotional decision that trips up most retail investors.
DCA works particularly well for people who do not want to be full-time traders and do not want the psychological load of playing highs and lows. The 2019 version of this article referenced a DCA return of 32.13 percent over a two-year window at AUD 100 per week, which was a fair number for that period. In 2026 the specific number changes weekly, but the pattern holds: every three to five year DCA window into Bitcoin since 2018 has historically ended in profit, though past performance is not a guarantee of future results.
Bottom Line. DCA works because it removes the two things most retail investors are worst at: timing the market and staying emotionally consistent through drawdowns.
If you don’t already have an investment approach for Bitcoin or cryptocurrencies, and you want to start getting into the space, consider a plan to set and forget. Plenty of exchanges offer set direct debit options which take the hassle out of remembering to buy Bitcoin each week or month and some have the added safety net of custodial support.
TIM DRAPER PREDICTS BITCOIN TO HIT $250K BY 2022
Billionaire Tim Draper is known for picking successful investments (Skype, Tesla, Twitter and more) and in the crypto space he famously tipped $10K USD Bitcoin weeks before it got there and is heavily invested in the space to back up his claims. Recently, Draper made a bold claim – that Bitcoin would hit $250K USD by 2022. If that were to happen, the value of Bitcoin would equal 5% of total global currency markets.
In an interview with BlockTV and as reported by Dailyhodl Draper went even further and said, “I think that may be understating the power of Bitcoin…” And that if people “…have any distrust of their government, they’re going to much prefer Bitcoin because if the government is using currency as a political force, they’re going to lose out … Nobody’s going to be comparing anything to dollars 20 years from now. Nobody’s going to be using any kind of fiat currency 20 years from now.”
USD TO BTC COMPARISON
The cryptosphere is always aflutter with BTC to USD comparisons; ‘Bitcoin gained X amount versus USD this year/ month’. But rarely do we see the comparison done the other way. I took a moment this week to compare USD to BTC which revealed a pretty scary proposition if you are sitting solely in your countries native currency, understandably you get paid in and transact in fiat, but surely a hedge of some portion of this holding into Bitcoin is simple given the below statistics.
I went way back to basics on this one and simply searched USD to BTC. I was pretty shocked by the results.
Over the last five years, the power of the US dollar over Bitcoin has been in continual decline. Which basically means if all you did was hold your native currency, then you would have watched it steadily depreciate year after year.
Governments continue to print fresh fiat at alarming rates while Bitcoin releases its block reward. These rewards are continuing to reduce over time and eventually supply will dry up at 21 million.
I also checked out the British Pound to BTC which showed an equally concerning comparison.
The Fiat Depreciation Argument for Holding Bitcoin
Quick Answer. Over any multi-year window since 2015, the Australian dollar and every major fiat currency has depreciated against Bitcoin. This is a mathematical consequence of Bitcoin’s fixed 21 million supply cap combined with continued fiat expansion by central banks. The DCA argument for Bitcoin is not a price prediction, it is a hedge against continued fiat depreciation.
The USD-to-BTC and AUD-to-BTC comparisons are the mirror image of the more common BTC-to-USD framing. Over the last several years, the purchasing power of the US dollar and Australian dollar in Bitcoin terms has trended downward. Meanwhile the Bitcoin protocol released its 2024 halving on 20 April 2024 at block 840,000, cutting daily new BTC issuance from roughly 900 to about 450, with total supply asymptoting to 21 million by 2140 (CoinGecko, 2024). Over 94 percent of all Bitcoin that will ever exist has already been mined.
This is why DCA supporters frame the strategy as a hedge rather than a bet. Even a small portion of savings redirected into BTC on a recurring basis functions as an inflation hedge against the ongoing expansion of AUD supply. The Australians who have benefited most from Bitcoin over the last five years are not the ones who bought perfectly, they are the ones who kept buying consistently.
Bottom Line. Bitcoin’s DCA case rests on math, not prediction: a fixed-supply asset trending against expanding-supply currencies produces a durable long-horizon tailwind.
IS BITCOIN MINING PROFITABLE AGAIN?
Yesterday one of Mining Store’s Directors, William Wright, wrote an article discussing whether or not Bitcoin mining is profitable again. Will breaks down how this can be calculated & explains his answer. You can view the article here.
OKEx DELISTING PRIVACY COINS
Leading crypto news site The Block, reported this week that Korean based exchange OKEx will delist all five privacy coins on its platform; monero (XMR), dash (DASH), zcash (ZEC), horizen (ZEN) and super bitcoin (SBTC).
This comes after the international anti-money laundering body, Financial Action Task Force (FATF), issued its regulatory guidelines relating to “travel rules”. Which basically ruled that exchanges need to provide details of both the buyer and seller for all transactions. These details include information like name, account number and location. Given the very nature of privacy coins is to deliberately prevent this, they have been deemed to breach the regulation.
It’s likely that privacy coins will continue to feel the heat from government regulators around the globe as they become subject to FATF, and probably KYC, regulations. You might remember that only recently Binance had to remove multiple coins off its exchange and relocate them to a US only Binance exchange to adhere to new regulations imposed on coins and tokens in the US. While this wasn’t privacy-specific and had more to do with KYC, it does show a global increase in pressure on exchanges and even other projects to stay listed.
YOUR PRIVACY AND FACIAL RECOGNITION (OPINION)
As I write this, I am extremely concerned at the news that the Victorian government in Australia will be uploading all driver licences into a facial recognition database. The Age reported yesterday that the first data upload has already been completed and VicRoads along with Victoria Police will both have access to the database.
So far the state government has blocked the federal government from accessing the database, and claims all citizens’ details are secure. The State has cited that this tool be used to counter identity theft fraudsters and terrorism-related activities.
I’ll be honest. This scares me.
China has been using facial recognition for some time and we have watched that play out recently in the face of the Hong Kong riots. Protesters have resorted to covering their faces while dismantling lampposts and devices they believe to contain this recognition for fear of harsh government retribution.
The underlying concern is that our freedoms are being stripped from us, one by one under the broad and secret banner of “national security”.
We are effectively moving towards living under constant surveillance and monitoring where nothing you do goes unseen, unwatched or unrecorded.
Link this back to KYC legislation around the globe and the delisting of privacy coins due to FATF and “travel rules” in Korea and it really does keep coming back to the same questions – how much privacy does your government want you to have? And how far are they willing to go to stop you from having it.
FEAR & GREED
The Alternative.me Fear and Greed index is still showing a somewhat fearful market. Nothing like last month’s extreme fear and score of 11, but still a definite uncertainty within the market. With the launch of Bakkt futures due September 23rd, expect to see clarification of a shift in direction on or before this date.
Keep an eye on longs and shorts around this period as well and remember that sometimes no trade is a good trade. If you have a long term hold position then be sure to keep it on ice and don’t let the volatility around this period force you into rash decisions. Times of accumulation or stagnate sideways movements are often when people sell out of positions due to boredom.
Wealth accumulates over time and don’t be lured into a get rich quick mentality. Keep your eye on the long game and stay focused.
Your Next Step with Mining Store Australia
Dollar cost averaging Bitcoin is a long-horizon accumulation strategy that suits Australian investors who want steady BTC exposure without needing to trade the highs and lows. Bitcoin’s fixed 21 million supply cap, the April 2024 halving to 3.125 BTC per block, and the ongoing depreciation of fiat purchasing power against Bitcoin are the structural reasons the strategy has historically rewarded disciplined buyers. The September 2019 headlines that once dominated crypto Twitter are now historical footnotes, which is exactly the point: the investors who did well through 2019 to 2026 were the ones ignoring the weekly noise and consistently accumulating.
Hosted Bitcoin mining is the natural complement to a DCA plan. Rather than buying BTC each week with AUD, an Australian investor can convert a fixed monthly hosting cost into an ongoing BTC income stream by placing a Bitmain Antminer S21, S21 Pro, S21 XP, or S21 XP Hydro at Mining Store’s EU facility. As Australia’s number-one Bitcoin mining hardware supplier and Melbourne-based Bitcoin mining specialist, Mining Store has helped over 6,000 Australian Bitcoin mining clients since 2016 accumulate BTC through hosted mining at 12 cents per kilowatt-hour, backed by an on-site mining service centre, a free Bitcoin mining consultation service, the Mining Strategy Calculator, and the Live Income Estimation Tool. The business was founded by Bitcoin miners William Wright and Callum Cameron for exactly this audience: Australians who want long-horizon Bitcoin exposure with the operational side handled for them.
To model a hosted mining plan alongside your existing DCA plan, book a free Bitcoin mining consultation or explore the Mining Store hosted mining facilities directly. You can also reach the team on 1300 644 978 or at [email protected] during Melbourne business hours, Monday to Friday.
Author: Julian Carruthers
Not financial or investment advice, always do your own research.
For last week’s Weekly rundown check read it here.
