Bitcoin Rolling 4 Year Compound Annual Growth Rate

2 thoughts on “Bitcoin Rolling 4 Year Compound Annual Growth Rate”

1. Not bad

2. The math checks out:

   Price 4 years ago: 9848
   Price today: 30144

   30144 / 9848 = 3.061

   This means that today’s price is more than three times the price from four years ago.

   Find x such that:

   x^4 = 3.061  
   
   log(x^4) = log(3.061)  
   4 * log(x) = log(3.061)  
   log(x) = log(3.061) / 4  
   exp(log(x)) = exp(log(3.061) / 4)  
   x = exp(log(3.061) / 4)  
   x = 1.328  

   Let’s double check:

   >>> pow(1.323, 4)  
   3.0636516082409995  

   Close enough.

   Looking at the value of x, we can infer that the CAGR over the last 4 years is about 32% per year, compounded.

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