It sounds intelligent… until you do the math.
“Diminishing returns” describes a system where each extra input yields less output, like fertilizer giving smaller crop growth the more you use it.
But Bitcoin doesn’t operate that way. It’s not a field. It’s a compounding network effect, exponential by design.
Let’s look at the numbers:
If you bought Bitcoin at $1,000 and it hit $20,000, that’s a 20×.
Then it crashed to $3,000 and rallied to $69,000, you’re now up 69×, not 20×.
Now at $110,000, you’re up 110×.
That’s not diminishing returns. that’s called accelerating wealth creation.
Every new cycle compounds on the previous one. Each 10% move now adds billions in market cap.
So when someone says “diminishing returns,” what they really mean is: “I don’t hold any.” Because anyone actually holding Bitcoin knows their gains expand, not shrink.
You don’t measure exponential growth by percentage alone, you measure it by scale. A 2× on $1 trillion creates more wealth than a 20× on $10 billion ever could. People misuse “diminishing returns” to cope with missed opportunity. They can’t grasp that compounding on a massive base still produces record-breaking outcomes, just in different dimensions.
If you’ve been holding since 2016, 2018, or even 2020, you’re not seeing diminishing returns, you’re living proof that most people don’t understand compounding.
The only thing diminishing here is their ability to recognize what exponential looks like when it’s right in front of them.
This article is for information and education only and is not investment advice. Crypto assets are volatile and high risk. Do your own research.
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