Just saw an up and coming #bitcoin podcaster (10k subs) interview someone by the name of George Bodine. George’s claim is that if you buy 0.1 of a BTC with a market value of $10k, that in 20 years it will be worth $64 million. His logic is to use a Compound Annual Growth Rate calculator with the parameters set to $10k value at 55% CAGR for 20 years. I ran the numbers and it is $5.59 million, not $64 million.

More importantly, CAGR assumes that interest is paid annually over the life of the calculation and is added to the principal. This then creates the compounding effect, where as each year passes interest gets paid on a bigger principal amount. Problem is that you don’t get paid interest when buying and holding bitcoin. Your original BTC purchase stays the same for the 20 year life and no compounding is taking place.

There were over 130 replies to the video and not one pointed out these flaws. I replied with examples of the math and logic and the podcaster himself responded by saying that “BTC has a fixed supply.”

This is a great example of how someone is trying to measure bitcoin with a fiat currency system. It doesn’t work. In fact it creates a type of FUD that doesn’t help the bitcoin cause or the credibility of either of the parties involved. The bitcoin price in 20 years will be what it will be… 1 BTC = 1 BTC. Do your research! 🙏