Sure.
I'm not going to look up exact numbers, but on that day I think Bitcoin lost something like a quarter of its value. (It has since mostly recovered).
This guide is written for basic investors without a good understanding of the space, who aren't familiar with these kinds of losses and swings. So let's take two hypothetical newbie investors, one who is DCAing and one who is not, and imagine how they would react.
Investor A put in 2,000$ from his savings into bitcoin as a lump sum: "HOLY SHIT I JUST LOST 500$ AND IT HASN'T EVEN BEEN A WEEK," they might say. "THIS INVESTMENT IS CRAP, I'D BETTER TAKE OUT MY MONEY BEFORE I LOSE ANYMORE." Or even worse, they start trying to day trade to make it back up without really knowing how day trading works (And day trading isn't an easy skill to pick up, it's one of the more difficult ones.) They proceed to lose massive amounts of money, have a ton of stress, and just generally have a bad time.
Investor B DCAs 100$ a week; "Huh, I'm out 25$. Well that's not great. Anyway, I wonder what's on TV..."
I'm not going to look up exact numbers, but on that day I think Bitcoin lost something like a quarter of its value. (It has since mostly recovered).
This guide is written for basic investors without a good understanding of the space, who aren't familiar with these kinds of losses and swings. So let's take two hypothetical newbie investors, one who is DCAing and one who is not, and imagine how they would react.
Investor A put in 2,000$ from his savings into bitcoin as a lump sum: "HOLY SHIT I JUST LOST 500$ AND IT HASN'T EVEN BEEN A WEEK," they might say. "THIS INVESTMENT IS CRAP, I'D BETTER TAKE OUT MY MONEY BEFORE I LOSE ANYMORE." Or even worse, they start trying to day trade to make it back up without really knowing how day trading works (And day trading isn't an easy skill to pick up, it's one of the more difficult ones.) They proceed to lose massive amounts of money, have a ton of stress, and just generally have a bad time.
Investor B DCAs 100$ a week; "Huh, I'm out 25$. Well that's not great. Anyway, I wonder what's on TV..."