Damus
Born To Be Free · 51w
I’m thinking about what nostr:nprofile1qqsvf646uxlreajhhsv9tms9u6w7nuzeedaqty38z69cpwyhv89ufcqpzpmhxue69uhkummnw3ezuamfdejszxrhwden5te0wpex2mtfw4kjuurjd9kkzmpwdejhgj8j7r8 has recently spoken about ...
GJM profile picture
Bitcoin does not have a compound annual growth rate CAGR. It has an annual rate of return ARR. At it’s core CAGR is a way to describe in one number what happens when you reinvest an interest payment or dividend back into the original principle over many years at different interest rates. Bitcoin does not pay interest so you cannot use the CAGR maths from the fiat investment system to evaluate a return. Bitcoin is a completely different beast.
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Born To Be Free · 50w
I appreciate your response! I’m so used to meeting my fiat friends where they are so I sometimes default to the fiat terminology. I think CAGR can still Be useful in backwards measuring bitcoins performance. Of course it doesn’t have cash flow but we can convert the typical cash flow to price ...