Everyone heard of the eighth wonder of the world- compounding.
So what happens if you take the asset with one of the best CAGRs in the recent decade and put it through compounding?
Does this greatly increase your chances of FIRE (Financially Independent, Retire Early)?
I'm curious to find out.
And interestingly, I came across this website- https://bitcoincompounding.com
This website provides various models for extrapolation of Bitcoin's growth in the next 30 years or so and allows you to work out your chances of FIRE via Bitcoin compounding.
Generally, it works like any other FIRE calculator with the only difference being that the asset being used here is Bitcoin.
The website has 7 different models in extrapolating Bitcoin's growth. There is a detailed explanation on what these models are on the website (see below).
(Source: https://bitcoincompounding.com)
Generally, these 7 models differ in a few ways, one of which is the aggressiveness of the price growth anticipated. All models...