Quote from: JayJuanGee on February 15, 2024, 03:07:31 AM

Quote from: teamsherry on February 14, 2024, 11:07:00 PM

Could you explain more about how bitcoin compounds value to me a bit, i would really love to understand.

Can't you already see the idea of compounding value within my previous discussion and pointing out 8-9 doublings of the BTC price since 2015? The idea of compounding value should be clear from looking at the numbers, no? which part is not clear?

Of course it is not guaranteed to continue to happen.. but if you happen to have some understanding how bitcoin is more scarce than fiat currencies (and likely more scarce than any other asset or currency in the world), then you also might understand why bitcoin is likely to continue to have ongoing compounding value effects.. even though, again, it is not guaranteed, so we should account for how compounding takes time and likely to continue to take time..

and I personally like to look at the 200-week moving average rather than spot price in order to also see how the 200-week moving average (which tends to the the bitcoin price bottom) continues to go up, which in my entry-level fuck you status chart, you can see both the historical numbers and also the projection of bottoms (200-week moving average) until 2074...and that may or may not end up being correct, also...so you should be preparing according to your own financial and/or psychological circumstances.

Quote from: JayJuanGee on February 13, 2024, 12:09:56 PM

In bitcoin it is not good to think in terms of compounding interest, but instead think in terms of compounding value.

I touch upon that comparison in another thread in a post of mine from a few days ago:

Quote from: JayJuanGee on February 10, 2024, 03:16:59 AM

For example, even just looking at where bitcoin was in 2015, we can see that there have been about 9 doubling of bitcoin's value events (in terms of it's dollar value) and yeah some retracements but still we are currently still around 8 doublings since 2015 (that is ONLY a little more than 8 years).
1) $250 (2015)
2) $500 (2015-2016)
3) $1,000 (2016-2017)
4) $2,000 (2017)
5) $4,000 (2017-2020)
6) $8,000 (2017-2020)
7) $16,000 (2017-2022)
8 ) $32,000 (2021-2023?)
9) $64,000 (2021-?)
10) $128,000 (?)
Historically, those value appreciations in bitcoin have been way greater than the debasement of the dollar even if someone were to have had paid you 10% interest on the dollars that they were holding for you, it still would have had been better for you to keep your value in bitcoin even if no dividends or interest had been paid by keeping your value in bitcoin and stored by yourself in isolation.

Historically, many folks have gotten overly greedy with their bitcoin and they put their bitcoin with third-parties in order to receive interest or yield and then they end up getting fucked.. so frequently it is not worth the risk to be using those kinds of interest bearing products in relation to your bitcoin, unless you can have some confidence that they are not gambling with your BTC too much.. which is truly difficult to assess because sometimes they are lying to you about what they are doing with your BTC in order to earn the yield.

Now that I know how bitcoin compounding works, I can see that it favors long-term investors. Historically, this has happened at intervals of two or even three times. Based on your explanation, if I started holding in 2015 and held it for four years, I would have received an eight times return on my initial investment . So bitcoin not only offers good compounding value effect but also a means to store value.

And this compounding effect would or might continue to occur because bitcoin will remain a valuable asset over time. Just look at how much it cost and how simple it was to obtain bitcoin in 2015. Then, picture what it will be like in four years, and you can see that I, as a holder, will still have the opportunity to profit even if the compounding value is only two times or even greater—no one can predict with certainty. Therefore, based on my theory—which I haven't tested—I believe that as bitcoin becomes more scarce, the compounding value impact may rise. Time will hopefully prove if I'm right or wrong 🙂.

I have seen the thread you creates on the fuck you status, it's quite broad and I take my time to look into it 😊.