Base Measure for Income + A Better Crypto Return Measure Part Three
Crypto Time
To wrap up this 3 part series, we are going to take the last 2 lessons and apply it to crypto. To be honest, it is much easier to comprehend when you apply it to crypto, and I debated having part 1 be crypto. But I think finishing this mini-series this way will help put a bow on the topic.
As a reminder, in part 1 of the series we laid the foundation of what money really is and how to better measure your changes in income.
Base Measure for Income + A Better Crypto Return Measure Part Uno
You got a 5% raise last year. One of the highest at the company. Sweet Man, congrats. That seems like a straightforward good thing….right? Right? Well, one of the running themes on this substack is, “nothing in finance is as straightforward as the gooroos lead you to believe”.
Then in part 2, we took this same framework and added a wrinkle for how to measure your net worth - which is really just a measure of your future ability of consumption so you need to add a little element of future timing.
Base Measure for Income + A Better Crypto Return Measure Part Two
Part 1 saw a nice breakdown of some ways to re-think your income (It’s not about the fiat $$). Honestly - some of these posts are so good I want to print them out and hang them on the wall. If you haven’t read last week’s post, go read it now. It should make you rethink what you thought you knew about money. This is a unique way to view your money and not some spin on out-dated advice Dave Ramsey ripped in the 80s and fintwit regurgitates daily.
Now we can take all we learned and apply it to crypto. The punchline - a lot of people grossly overestimate the returns they are making in trading crypto. Like a lot…