Dogecoin Vs. The Lottery a 12 Month Experiment

Dogecoin or the Lottery.  Which is a better way to spend some money.  Many people would say that playing the lottery is just wasting some money.  While That may be true but there is the possibility, no matter how slim it is, that you could hit the jackpot.  This is going to be an experiment to see how things come out if I spend that money on something other than the lottery.  In this case Dogecoin.  Some might say that investing in Dogecoin is like throwing money away like with the lottery.  In this experiment we will see how that turns out.

This is going to be a 12 month experiment that compares one risky investment against another.   You always hear that buying a lottery ticket is pretty much just throwing your money away.  It is  difficult to disagree with that.  I do enjoy buying lottery tickets and then looking at the numbers to see how it turns out.  I have been playing lottery games like Mega Millions and Power Ball for a long time.  So far I have not won the jackpot.  Or ever gotten more than three numbers correct.  I won $10 by getting those three numbers correct.  This is basically giving you 5 free plays.

Over the years that I have been playing that was my biggest win.  I have probably averaged about $12 of winning in the big jackpot drawings over the years.  Not a great return on my investment.   Basically I have been paying out money for the entertainment value.

Dogecoin Vs Lotter what we already know

We already know how much money will be invested

We know the time length of the investment experiment.

This it to see where we end up with Dogecoin compared to playing the lottery

The investment will be $2 on Tuesday and $2 on Friday or $4 a week.

Over the course of 52 weeks that will be a tidal of $208 invested

In the last full year I played the lottery. The same $208 was spent. I Won $12 for a loss of $196. There was the chance of winning the jackpot. Clearly that did not happen.

Sell now to get ready for the test

I Had purchased a few Dogecoin earlier in the year I jumped in at just over 3 cents a coin. There was $2 just sitting in my Robinhood account so thought I would go ahead and spend the $2. I ended up getting 54 Dogecoin. For this experiment to work I am going to sell those coins so that it does not lower the TCO before I get started. I want this to be aa 12 month representation staring from a specific day.
I will sell those coins before it starts on the 16th of march.

When I sold them the price was 0.055841 for a total of $3.02 so I made $1.02 on those 54 Dogecoin. This will be used as part of my $2 each buy day. It is possible that I will make a little money doing this It is also possible that I will lose some. I am fairly confident that I will not lose as much as I have playing the lottery but I can also almost guarantee that I will not hit the jackpot.

How the Dogecoin purchase will work

For this experiment I will be making a $2 Dogecoin purchase twice a week. On every Tuesday and every Friday. Those were the  two days each week that I would buy my lottery tickets. I will try to do the purchase close to the same time of day. This will try to keep it on a somewhat even playing field.
The object here is to show how dollar cost averaging works and how it can work to your favor. At least I hope!!

When I will cash out

I will keep a running log of how the value is fluctuating. I think that it will be very interesting to see what happens. The key for me is to not worry about any gains or losses as we are doing this. There will be no out point where I will take my profits and run.

I will amend that with if by some crazy chance during this experiment, say half way in, Dogecoin hits $50,000 a coin and I have 500 coins by then. The experiment is done and I am cashing out. I would put the chance of that happening as worse than me hitting the Mega Millions Jackpot.  Yet there is a chance.

In order for this to work the Dogecoin will have to be purchased in an environment that has little or no cost to it.  For this I will be using Robinhood.  It is very easy to use and it is the only financial service I use that will let you buy Dogecoin with no fees.

I will have a running chart of the test progress. You can find it here.  I will update it twice a week when I make my Dogecoin purchase.

Here is to hoping that this turns well.  In any case it will still be an interesting experiment to see how things turn out.

You can read my post about how Dogecoin is NOT a path to retirement Here

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