The Power of Compounding

When it comes to compounding, we tend to only think of money. After all compound interest is how our stock investments grow and how our student loans work. What if I told you life itself is about compounding?

For example, knowledge compounds. Every time you read a book you are compounding knowledge. Each year you work in your profession, you gain more mastery and knowledge. Each year you add to the knowledge of the previous years. Knowledge compounds. The more you know the more you can understand. You can only think to your highest level of comprehension. That level rises each year as you compound knowledge.

Relationships compound. Relationships are built on trust. As you maneuver throughout life you will meet and come to know many different people. As with every person you meet, initially, you both are strangers to each other. As the relationship matures you go from simple acquaintances to true friendship. Many of you reading this may be married. Initially, your spouse didn’t know you. But that stranger ends up becoming one of the most important people in your life.

When you start and stop different projects and endeavors, you are preventing the compounding from occurring. Many people don’t realize that compounding is the key to success. Without the compounding, we wouldn’t have any of the marvels of modern society.

NFTs-Retiring 18 yr olds since 2021

My wife will tell you I was very anti-NFTs as of July 2021. “It has no value.”, “Who the hell will buy a JPEG?” Etc. Etc.

My thought processes regarding NFTs are largely the same, however, I realized what I think really doesn’t matter? Who the hell made me the arbiter of value? Who am I to tell someone how to spend their own money?

Then I saw adolescents flipping these JPEGs for large sums. At a certain point you have to begin asking yourself, “Am I missing something?”. NFTs have no value to me, however, they have thought me a lot about learning to roll with the tide and to remain open to possibility.

How many times has that happened in our world? Famous economists and businessmen at one time called the internet a passing fad. Hedge fund managers used to doubt bitcoin. And now NFTs are attracting the attention of prominent corporations and individuals. Are NFTS a passing fad? Maybe. Maybe not. However, I argue they are something to look into based on the underlying technology and its possible utility.

Remain open. Some of the best ideas are things we can’t even fathom right now. Learn to merge them within your areas of expertise. Think like a winner.