Thread - Nostr Hypermedia

I understand compounding in TradFi when there is a compounding mechanism involved. But it looks like you are suggesting that there is a compounding mechanism involved if you stack BTC (maybe I’m wrong). But if you are suggesting that BTC is somehow subject to a TradFi compounding effect, I would be very grateful if you could explain how. Cheers. 🙂

↑ Parent

Replies (3)

HODL hodl@primal.net 3 months ago

Not compounding in the TradFi sense (no yield on yield). With BTC, “compounding” just means the more you stack, the more of your stack benefits from the same % price moves. It’s really just exponential exposure, not a built-in compounding mechanism.

2 replies ↓

John 3 months ago

Its what the world always should have been per @Jeff Booth, economy get more efficient - > buying power go up

Trivium 3 months ago

Assume an average Compound Annual Growth Rate (CAGR) for BTC price. Lets say 30%. After 5 years $10,000 becomes $37,000 After 10 years it becomes $138,000 After 15 years it's $512,000 After 20 years it's $1,900,000 After 25 years it's $7,000,000 After 30 years it's $26,000,000 Start early. stack hard.

1 replies ↓