Rule Of 72 In Compounding
he who understands it, earns it; he who doesn't, pays for it
One of Albert Einstein's famous quotes and one which is very true. This has nothing to do with Einstein however and was discovered way before his time and credited to an Italian Luca Pacioli in 1494.
Now that many of us are involved in compounding interest projects it is time to dig a little deeper to understand how powerful this phenomenon really is. Only being involved within a compounding project do you realise how much you have been missing out and now is the time to cash in. Every project I invest into now has to have compounding at the heart of it otherwise what is the point.
The rule of 72 is a figure used to work out the time it takes to double your investment at a given rate of return or growth rate. This number 72 is accurate for investments between 6% and 10% and only those that are compounded. This is the base number which can be used to quickly calculate in your head. For example 10% would take 72 divided by 10 = 7.2 years. Our very own HBD is 12% and therefore would take 6 years to double but not quite as it falls outside the norm and will get to that further in the post. I would guess most of our projects we are involved in would see us adding to the investments on a regular basis cutting doubling times predicted by a formula.
For instance if a company's turnover grows at 8% per year using the figure 72 it would take 9 years to double their turnover. Inflation which we are currently experiencing all over can also be calculated with the magical 72. 4% inflation would mean everything we purchase would double within 18 years. pretty neat knowing this magical number solves so many things we come across regularly.
What is interesting to know if your investment takes 3 years to double that doubling effect continues. For instance a $5000 investment after 3 years in now $10 000 but the next one in 3 years is now $20 000 and so forth meaning that last number doubles. This is how the rich get richer and money makes money as it truly does.
The number 72 does change for higher return percentages which we deal with so using HBD is a great example now. 6-10% works for the number 72 and anything outside those percentages we either subtract or add. 8% is chosen as the base now so for every increase on the number 72 we need 3%. 12% tells us we are 4% over so the number now moves to 73. Very basic and is designed to make it more accurate. 73 divided by 12% gives us 6.1 years now which is what HBD gives us.
This is CUB right now with a 63% APY. If one had 100 CUB staked/pooled (forget the dollar signs as this is 100 CUB then in 5 years one would expect to see 2327 CUB and who knows what the value is by then.
DeFi is harder to gauge as the pools are constantly changing meaning the APY is always moving and is never constant. The one good thing is they are a hell of a lot higher and suggest using a compound calculator for better guesstimates as they are a thumb suck at best. A good problem to have mind you so don't ever complain you aren't earning enough.
A decent calculator site I use often is Compound Interest Calculator
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The people doing V2K with remote neural monitoring want me to believe this lady @battleaxe is an operator. She is involved deeply with her group and @fyrstikken . Her discord is Battleaxe#1003. I cant prove she is the one directly doing the V2K and RNM. Doing it requires more than one person at the least. It cant be done alone. She cant prove she is not one of the ones doing it. I was drugged in my home covertly, it ended badly. They have tried to kill me and are still trying to kill me. I bet nobody does anything at all. Ask @battleaxe to prove it. I bet she wont. They want me to believe the V2K and RNM in me is being broadcast from her location. And what the fuck is "HOMELAND SECURITY" doing about this shit? I think stumbling over their own dicks maybe? Just like they did and are doing with the Havana Syndrome https://ecency.com/fyrstikken/@fairandbalanced/i-am-the-only-motherfucker-on-the-internet-pointing-to-a-direct-source-for-voice-to-skull-electronic-terrorism
That is absolutely the way of investing wisely for better profit for the future
Well, as Polycub stays at 4200 % APY, we’ll all be gazillionaires in a few years! 😉
Just kidding, compound interest is the key of everything in this world! Einstein was a smart dude, and apparently he was a bit of a player too, with the ladies. The guy had it all! 😉
How can we sustain an APY as high as 2000%. Compounding with this will sure be astounding lol
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Staking can give you a higher percentage in the market.
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This is one of my favourite rules!!
Yes it is a fascinating one and how it works for so many things. Compounding is seriously good fun and knowing having a target in mind makes it even easier to achieve. Takes time but at least you are going to get there.
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THE KEY TO EVERYTHING!!😏
Crypto changes to quickly to depend on multi-year projections, but HBD might change that
Very interesting. I can't say as though I actually understand it all, but I will definitely look into it a bit more. I had never heard of this before actually.
It is actually great to know and one of those things you never forget.
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Yes I've come across the rule of 72 before and it's a great one, they should teach this shit at school.
Can you imagine how revolutionary that would be teaching kids things they can use in real life lol. When you think about it there is not much useful shit taught at school.
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