📉 The coin has grown, but the balance has not. Why?
Imagine, you bought a coin for $1000. Then it fell by 10%#, and your balance became $900. But later it grew by 15%. It seems that everything is fine?
❌ Not quite.
- 15% of $900 is only $135.
- As a result: $900 + $135 = $1035
- And you invested $1000…
🔍 It looks like +15%, but in reality it is only +3.5% from the beginning.
This is called "interest asymmetry:
To recover from -10%, you need not +10%, but +11.1%. And if the drop is -30%, only +43% can restore the value.
📌 Growth always occurs from a smaller amount. And that is why many hold the coin, see "growth" - but the balance is still lower than it was.
🎯 Lesson: interest is a tricky thing. Balance tells the truth.