The crypto world operates on a 4-year cycle.
1W principal enters the crypto world, 3 cycles, each cycle earns 10 times the total principal, can earn 1000W in 12 years.
Question: What is the annual compound return rate?
The answer is: 78%
Next, if you earn 100% for 3 consecutive years, lose 55% in the 4th year, and then earn 25% in the 5th year, what is the annual compound return rate?
The answer is: only 35%
These two examples are actually very extreme, and most people can't achieve them, but the annual return rate is not as high as it seems intuitively, which shows how difficult it is to
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