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Steven Bowen's avatar

A great explanation of a really important & often poorly understood issue

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Eric's avatar

Vastly presumptuous argument here. As others have said, volatility is not a one way street. Bitcoin is known to crash and recover, it’s also known to surge and then correct. The premise that people are “confused” about arithmetic vs. geometric returns is wildly unsupported. If I buy bitcoin at 40000 and it falls to 30000, I am not going to sell it. However, I don’t dread the fact that I now need a 33.3% return to recover from the 25% loss to get back to breakeven price; instead, I am confident enough in my investment to trust that the volatility and market correction will take care of that naturally. Crypto’s volatility is no more a curse than it is a blessing. Just because your argument is rooted in a “volatility bad” basis, it’s no surprise that you would end up skeptical of cryptocurrency. And…FYI, the current BEAR case for BTC by 2030 is annualized 30% returns…so if that sounds ridiculous to you, know that that is the opinion held by those LEAST confident in the coin…

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