The Ten Commandments of Investing
Many Happy Returns
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The Base Rate Return for a New Asset Class Like Cryptocurrency
Just knowing what the average return is for equity versus bonds, you're going to generate about 4% more on equity in a typical year than you would on bonds. And that's an incredibly important number because it immediately tells you that if you're investing for a long period of time, you put more money into equity. But one of the difficulties is that if you have a new asset class like cryptocurrency, you don't have much history. So you can't really assess the base rates particularly well. I think that's why it's led many people to overestimate what returns they'll have in future for things like Ethereum or Bitcoin.
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