Replying to Avatar jimbocoin 🃏

The annualized return on Bitcoin in terms of appreciation (CAGR) is about +40% per year.

So unless your loans have higher than 40% APR, you’re better holding both debt and #Bitcoin, probabalistically speaking.
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Diesel 2y ago

Would you mind linking your source for the CaGR at 40%?

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jimbocoin 🃏 2y ago

Of course! Last year I wanted to answer the question “when can I retire based on my stack size?” So I developed this interactive notebook.

The +40% CAGR is based on a lookback period of 4 years of price data. The model attempts to fit the erratic price movement to a log scale by finding the line that captures the middle 80% of data points.

All the math is explained and/or linked to in the notebook:

https://observablehq.com/@jimbojw/wen-moon

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Diesel 2y ago

Thanks for putting this all together. Really good stuff.