Start Early
The most important thing about compounding is to start early.
I’ve been teaching my son Greyson the first principles of money, economics, and investing.
Not stock tips. Not get-rich-quick stuff. First principles.
We started with compound interest. Einstein supposedly called it the eighth wonder of the world. I don’t know if he actually said it. I do know it’s true.
Then I told Greyson the part that matters most.
Start early.
Better at 12 than 22. Better at 22 than 32. Better at 32 than 42.
He repeated it back to me. Then again. Seven times.
Start early.
He Did the Math
Here’s the thing: I didn’t hand him the answer.
Greyson did the math himself. He built a spreadsheet. He ran the numbers.
And then he made a decision.
He decided to sell some of his goods and services and use the money to buy hard capital. Bitcoin. Plus two digital credit instruments, STRC and SATA.
Nobody told him to. The spreadsheet told him to.
Volatility
We talked about volatility. A lot.
Bitcoin, priced in dollars, can drop. Sometimes hard. You need the stomach for that, and I wanted to know if he had it.
STRC and SATA are different. They’re relatively stable. They still have their moments of volatility, because they’re new. Novel instruments. The market doesn’t fully understand them yet.
Greyson gets that. He’s not looking at the price every day. He’s looking at the next ten years.
Low Time Preference
That’s what really gets me.
Greyson has low time preference. He’d rather have more later than a little now.
Most adults I know haven’t figured that out. Most adults I know are still trading their time for income. Most adults I know started late.
He’s starting at 12.
I’m proud of him. Really, really proud.
I believe this kid has a bright future. A future free from the income requirements most people live under their whole lives.
All because he started early.