No Musing Time

In recent weeks I have increasingly noticed that, due to the normal daily world changes, I have had very few musings about crypto. Perhaps it's time for me to start jotting down little notes on the increasingly rare occasions when it happens. In my case, this largely has to do with the fact that I am stuck in terms of investments and that I am therefore dependent on a few projects. As long as there is little change, little will change for me and to consistently keep an eye on the crypto news ... pff no! If you want to do it well, you have a day job. And that's not worth it to me for the 10 dollars I could invest at most.

Checking Crypto News

What remains then is to check out the crypto news on Monday morning and see which headlines appeal to me. And try to use my own 'insight' to see which of this news I should remember, and which news I should forget immediately. Because as usual, that's a lot. But now and then there is also news that brings a bright spot and gives me hope for the future.

Compound Anual Growth Rate

Have you ever heard of CAGR? This calculation method can be useful if you want to invest in financial products. It stands for Compound annual growth Rate. This term comes from the financial world and is used to calculate the average growth rate of a security over a certain period. This is usually used to calculate the CAGR over a year, so the name itself says it all. But this period can also differ. This value can be, for example, turnover, profit, investments, or any other key financial figure.

CAGR is especially useful when the growth of a value is not constantbut varies.

So it is mainly used to easily compare different investments or financial performance, even if the periods differ or growth is volatile.

And the latter is something that we are all too familiar with in crypto.

Four Years Cycle

A minimum investment period of four years is recommended for crypto because it is assumed that a crypto cycle also lasts four years. So I thought it would be fun to look back four years today with regards to Bitcoin/USD and secondly, I looked at the same with HIVE/USD.

Bitcoin did well!

Now of course we all know that crypto is volatile and that growth mainly occurs in the bull markets, but if you calculate a CAGR for Bitcoin over the past four years, looking from March 1, 2020, to March 1, 2024, you see a very nice 64.4% growth rate! And you could say that is a huge growth percentage.

If you had bought 1000 USD worth of Bitcoin on March 1, 2020, you would have had 1664.40 USD on March 1, 2024, without doing anything.

What about HIVE?

But now we are of course wondering how things went with Hive in the same period from March 1, 2020, to March 1, 2024. Unfortunately, that is a lot less positive. Hive has achieved a Growth Rate of 0.9% over that period.

Take the same 1000 USD as a starting point, and you will end up with 1009 after four years. That's a lot less impressive.

Of course, this does not include the fact that you can earn curation rewards at Hive and that you can also earn with blogs on Hive. In short, there are more earning opportunities on Hive itself than with Bitcoin, but looking purely at the price, Bitcoin has gained an impressive 64.4% from March 1, 2020, to March 1, 2024, and Hive only has a very meager 0.9%.

Hopefully, we will do better in the next four years! What do you think?