Damus
GJM · 51w
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...
Born To Be Free profile picture
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 appreciation, or at least that’s how I’ve explained it
1
GJM · 51w
I think there is a natural reflex to want to reach for a tried and true explanation of how certain types of returns work in order to explain what we see happening in Bitcoin, but unfortunately CAGR actually distorts rather than clarifies what happens with BTC gains. CAGR relies fundamentally on bein...