Thread by @DavidAlade__

There's a concept in the world of Investing called "infinite returns". That's what I am making in one of my #Bitcoin accounts.

Infinite returns is achieved when you no longer have any money invested in something but you still own it.

Here's how I did it:

When #Bitcoin was 33k I bought some with idle cash on hand.

I allowed it to ride to 41k, a 24% upside and then sold a part of it.

The part of it that I sold is just an amount big enough to cover my initial investment. Sold that and left the 24% return invested.

Let me put some numbers to it for easier understanding.

Imagine I invested $1,000. Made 24% return on the $1,000 bringing my wallet balance to $1,240.

I sold just $1,000 out of that balance and I'm left with $240 invested in Bitcoin.

Here's where infinite return comes in.

Return percentage is calculated as

Absolute Return/Capital Invested

When capital Invested is zero as is the case for me, any return made on such asset is infinite and you can never make a loss on such asset ever even if it goes zero.

Calculating invest return would mean dividing any amount in the balance by zero. And Any thing divided by is infinite.

That's how you make infinite returns.

Bitcoin price is dropping now but I have no fear.

Mind you, I'm long Bitcoin.

Please don't take this as an investment advice at all. It's only for educational purposes only.

Important to note

https://twitter.com/cburniske/status/1348367187724042240?s=19

And I have written it before, you will never buy the dip even though you wished it to come.

|| "Why You Will Never Buy The Dip" davidalade.com/why-you-will-n…