How's your day everyone? Let's do some Math!

I'll keep this sweet and short. I think not many really understand the power of compounding. You might heard this in some investment schemes already but did you realize the power of it if you continue compounding the numbers?

image from pixabay

Here's the Scenario:

Let's say you bought the minimum investment for LIZA coin in Yobit at price of 15 satoshi each for 5,000,000 pieces and you want to compound it for 60 days. Currently, Yobit is offering 10% daily compounding profit for their investment box.

Given that scenario, your initial investment would be 5,000,000 x 15 = 75,000,000 satoshi. I assume only whales can reach that initial investment but let's do the calculation for the sake of Math.

Let's see how much will be the break even price:

COMPOUNDING DAYS	# OF COINS	BREAK-EVEN PRICE IN SATOSHI
1	5,000,000.00	15.00
2	5,500,000.00	13.64
3	6,050,000.00	12.40
4	6,655,000.00	11.27
5	7,320,500.00	10.25
6	8,052,550.00	9.31
7	8,857,805.00	8.47
8	9,743,585.50	7.70
9	10,717,944.05	7.00
10	11,789,738.46	6.36
11	12,968,712.30	5.78
12	14,265,583.53	5.26
13	15,692,141.88	4.78
14	17,261,356.07	4.34
15	18,987,491.68	3.95
16	20,886,240.85	3.59
17	22,974,864.93	3.26
18	25,272,351.42	2.97
19	27,799,586.57	2.70
20	30,579,545.22	2.45
21	33,637,499.75	2.23
22	37,001,249.72	2.03
23	40,701,374.69	1.84
24	44,771,512.16	1.68
25	49,248,663.38	1.52
26	54,173,529.72	1.38
27	59,590,882.69	1.26
28	65,549,970.96	1.14
29	72,104,968.05	1.04
30	79,315,464.86	0.95
31	87,247,011.34	0.86
32	95,971,712.48	0.78
33	105,568,883.73	0.71
34	116,125,772.10	0.65
35	127,738,349.31	0.59
36	140,512,184.24	0.53
37	154,563,402.66	0.49
38	170,019,742.93	0.44
39	187,021,717.22	0.40
40	205,723,888.95	0.36
41	226,296,277.84	0.33
42	248,925,905.62	0.30
43	273,818,496.19	0.27
44	301,200,345.81	0.25
45	331,320,380.39	0.23
46	364,452,418.43	0.21
47	400,897,660.27	0.19
48	440,987,426.29	0.17
49	485,086,168.92	0.15
50	533,594,785.82	0.14
51	586,954,264.40	0.13
52	645,649,690.84	0.12
53	710,214,659.92	0.11
54	781,236,125.91	0.10
55	859,359,738.51	0.09
56	945,295,712.36	0.08
57	1,039,825,283.59	0.07
58	1,143,807,811.95	0.07
59	1,258,188,593.15	0.06
60	1,384,007,452.46	0.05

As you can see, the longer you compound the number, the higher the rate of interest on daily basis will be. The break-even price also decreases. This is just for 60 days. What if you compound it more than that? If that's the case, calculator will be very useful.

In this scenario, if the price of LIZA stays at least 1 satoshi each, you will profit at least x20 of what you invested if you sell all your LIZA after 60 compounding days. What if the price stays at 5? Therefore, you will profit x100 of what you invested. That's how powerful this can be. Now if the price stays higher, then it's up to you to count and decide what profit is "enough" for you. Be careful though because many whales know this fact too. Be mindful that you're not the only one who wants to make profit.

That's it for now. Thanks for reading!

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Disclaimer:

As I say always, don't invest what you can't afford to loose. There's no guarantee that the price will stay the same after a specific amount of days. It's up to you to calculate and monitor your investments. This can only serve as a guide and not a professional recommendation. You should always invest at your own risk.