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Replying to Avatar GJM

CAGR has nothing to with BTC price or price action. CAGR as it is applied to BTC is simply a way to compare BTC’s hypothetical fiat spot sale price to the performance of a TradFi investment that has an actual compounding mechanism built into it ie. yield folded back into principal. To apply a CAGR equation to BTC’s future spot sale price is logically irrelevant because Bitcoins price is not subject to a compounding mechanism.

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Trivium 4mo ago

That's actually a really good point. The definition of CAGR assums reinvestment of any interest over time only to simplify the formula. But the calculation does not require a yield. The 1/n in this equation is the compounding mechanism.

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