Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
shield132
on 06/07/2024, 18:36:37 UTC
From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

                                                       REMEMBER
                                                       50% profit on $1000 is $500
                                                         5% profit on $100,000 is $5000
                                                          THE IMPLICATION IS;
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.
How can you chase more capital when you don't have capital and the whole purpose of your investment is to get a huge profit margin to increase the capital? That's the issue here. What you say only applies to rich people and they are smart enough to prioritize low risk - low reward returns instead of chasing bigger returns.

You need to overtake inflation in your country, I'm not sure which country you live, but in my country the inflation rate stated by central banks is 6%, but the reality the inflation rate is around 10%-15%.
If inflation is so high in your country, try to save money in USD, Euro or GBP. Bitcoin is definitely the best option but if you want to keep some cash, don't keep local currency.