You have $2K. Bank: $2K in 5 years. Bitcoin: $17K
Power Law model projection vs 4.5% bank APY
Bank (5yr)
$2K
4.5% APY
Bitcoin (5yr)
$17K
Power Law
Worst Case
$7K
60% crash + recovery
80/20 Split
$5K
80% bank / 20% BTC
Portfolio Comparison
Time Horizon Comparison
| Years | Bank (4.5%) | BTC (PL) | BTC (CAGR 20%) | Worst Case |
|---|---|---|---|---|
| 1yr | $2K | $6K | $2K | $800 |
| 3yr | $2K | $10K | $3K | $4K |
| 5yr | $2K | $17K | $5K | $7K |
| 10yr | $3K | $51K | $12K | $21K |
| 20yr | $5K | $293K | $77K | $117K |
Risk: How Much Can You Afford to Lose?
If you can only afford to lose 20% of your savings, your max Bitcoin allocation is $400. The remaining $1,600 stays safe in the bank.
This 80/20 split would be worth $5K in 5 years (Power Law) — capturing Bitcoin upside while limiting downside.
DCA Entry Strategy
Instead of buying $2K of Bitcoin at once, spread it over 6 months at $333/month. This reduces the risk of buying at a local peak.
Should You Put $2K in Bitcoin?
The bank is guaranteed but slow — 4.5% APY barely keeps up with inflation. Bitcoin is volatile but has dramatically outperformed over any 4+ year period in its history. The answer depends on your time horizon and risk tolerance.
Not financial advice. Bitcoin can lose 50%+ in a single year.
Other savings amounts
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