Before going into the details of the Compound Interest mechanism & its power, I would like to share a true story with all the readers. In 2013-14, I was posted at Delhi & one of my team member used to frequently borrow some amount from me & after paying it off after certain period of time again ask for money from me & almost developed a revolving credit limit from me. One day I was just kidding with him & offered him a proposal which he grabbed with both hand without going into details. Apparently the offer was very lucrative. Here is the actual offer which he had accepted. Everyday I will give him non-refundable Rs.1000/- for a period of 1 month & in return he will pay me any amount on the first day and will pay double the amount on the next day & will continue this for 1 month. He started with the lowest denomination available i.e. Re.1. How many of you really think that I was stupid & must have gone mad to extent such an offer? I am sharing the details of calculation & you can make out from that if the game could have continued till the 30th day, I would have earned more than 53.68 crores, but on the 11th day, that guy back out of the game & returned me the amount that I gave him & after that he had never asked for any money from me.
Now going by the basics of what we all were taught in our school books, compound interest will actually show its amazing exponential growth if we can just give time. The fundamental of Long term investors to HODL applies here. Compound Interest is often referred as the Eighth wonder of the World. The great Albert Einstein has once quoted that "he who understand it, earns it... he who doesn't pays it".
Most of the readers in steemit platform are crypto lovers and usually holds certain altcoins. I just want to convey a message to you all that HODL your alts & within few years, this crypto is definitely going to blast with trillion of dollars expected to enter the market. Many of us may have enjoyed the ride of XVG,TRX,EOS, BNB etc. Just make sure to invest in premium alts & hold your position. Being a long term investor will always pay you huge. It is applicable in any sort of investment.
Special thanks to:
- Sumeet Kapoor
for introducing Steemit platform to me.
for extending all help as & when I require and guiding me.
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