xAurum Bot

Most users choose $10 daily, as this is a comfortable amount for mastering the DCA strategy and is also sufficient enough to get impressive results in 10/15/20 years with an average annual return of the asset above 20% (like BTC on the distance). So, this functionality is available FREE for everyone. For advanced users, Xaurumbot also offers advanced functionality that allows setting any purchase amount and frequency.

BTC is the world’s first monetary instrument whose quantity is limited by its nature, i.e. the source code. Regardless of the number of users or the perfection of mining machines, there will never be more than 21 million BTC in the world. As such, if the number of people who want to buy Bitcoin increases (and thus far, it has been growing continuously since the asset’s first appearance), the demand can only be met by increasing the available stock’s value.

Each BTC is divided into 100 million satoshis, which leaves room for growth by splitting into smaller and smaller pieces as the value increases. Bitcoin thus becomes a new type of asset that is ideal for transferring value not only in space but also in time.

“If you like to spend 6 to 8 hours a week working on your investments - do it. If not, then buy index funds with a Dollar Averaging model,” said Warren Buffett. Of course, the averaging strategy (DCA) works well for the classic indices – such as DOW JONES, S&P 500, NASDAQ, China A50, and others - because it is based on the fact that all markets grow over time and the indices include only the best-growing companies over the period. As for Bitcoin, it can be considered an index of the crypto market; since it is the youngest market, the risk/return ratio is the highest here.

Over the last ten years, the average annual return of BTC has amounted to 52%, which is admirable (classical indices average up to 9% per year). It can also be assumed that institutionalization of the market will lead to capital inflow, while the limited amount of BTC and the impossibility of increasing this will keep the asset among the best in terms of % profitability. In this way, from a professional investor’s point of view, if 10% of the portfolio is allocated to such an asset, the return exceeds the risk as 1:5 (while a good ratio is considered when this is higher than 1:2, i.e., when the investment bring returns even if only half of the trades were successful).

The beauty of the DCA strategy is that you do not invest all your capital at once but divide it into equal periodic shares; so, if the price of the asset decreases, this will often be better for you, and you will accumulate more Satoshi in the moment. Yes, sometimes, Bitcoin surprises the markets with its price movements, but it is worth paying attention to if we take a long-run view of the market. Whether it is crypto, stock, or real estate, we will see that all long-term assets are growing. And, as for Bitcoin, each of its “bottoms” and “crashes” occur at price levels much higher than they were at least four years before.

The Bitcoin blockchain uses mathematical tasks to add each new transaction to the blockchain to protect transaction records and make them trustworthy. To accomplish these tasks, miners use a huge amount of processing power and energy. This makes adding transactions a very expensive and resource-intensive process.

Those who invest their energy resources in the mining system are rewarded in BTC. Therefore, it is in their interest to protect the system and guarantee its reliability. If someone tries to add a false transaction to the BTC blockchain, it will not be accepted by other nodes, and the attacker will waste a lot of resources without getting any reward.

In general, Bitcoin can be seen as a technology that uses electricity to create reliable transaction records.

P.S. The network’s processing power at any particular moment in time is called the hashrate. Currently, the Bitcoin network is far superior to any other in this regard. At the beginning of 2023, the hashrate for BTC was ~320 Eh/s (exahesh per second, the second most resource – the Bitcoin cash network holds 200х less power), which is approximately equal to the power of 70 million top PC processors if used in mining. In order to influence such a network, comparable sizes of processing power should be used, which is hardly possible even for the largest of states nowadays.

In crypto, many things are possible. As such, in order to protect yourself, you need to apply standard rules of cyber secure behavior: do not click on suspicious links or emails, keep several methods of confirmation of transactions on the exchange (for example, SMS and mail, or mail + 2FA), and do not give out unnecessary permissions except when trading to your API-keys, if you use them, and periodically take accumulated assets to a more secured place from the exchange (which is also reminded by the bot).

The reward to BTC miners for adding a block to the BTC network now is equivalent to $150,000; as such, there are entire businesses with complex multi-million dollar equipment dedicated to this goal.

In 25 years, the reward for the same miners and the same action will be 4,800,000 Satoshi. Compare the size of these values in your mind. Right now, you can buy ~5,000 Satoshi for $1. If you do this every day for just $1 in a year, you will get ~1,800,000 Satoshi. While the future miner’s reward per block is very rough and approximate, it’s good to know that this can be accumulated in 3 years by actions you will barely even feel! So, over a time span of 5-10-15 years, if you accumulate a solid asset, even insignificant amounts become significant. Also, check the #Intention article, the point of which is that it’s the habit of accumulation that shapes savings, not the amount. As such, you can potentially find the ideal amount yourself by changing your spending patterns a bit.