Mark Moss uses the Rule of 72 to show how $1M becomes $128M. At a 20% annual return, wealth doubles every 3.5 years. Starting with a million, you hit 2M, 4M, 8M, 16M, 32M, 64M, then 128M in roughly 24 years.
The human mind thinks linear like this. So if I continue to save and if I continue to invest, I start with $100,000 and maybe I end up with $1 million over here. But that's not how the law of compounding works. The law of compounding can be summed up pretty simply, and we use something called the rule of 72. So we take the yield that we earn and we divide it by 72. So let's just say hypothetically Bitcoin's 200 moving day average is about a 30% CAGR, compound annual growth rate. Let's just call it 20% just for easy numbers. So I have a 20% compound annual growth rate. 7, 2 equals 3.5 years. So what that means is my wealth doubles every 3.5 years. So if I start with $1 million, in 3.5 years, it's $2 million, and then it's $4 million, and then it's $8 million, and then it's $16 million, and then it's $32 million, and then it's $64 million, and then it's $128 million. And my wealth starts going parabolic. What this means is at the same time it took me to go 3 years here, also took me 3 years here. If you wanna know more about creating a wealth operating system, just comment ready and I will send you the link. Thank you.
