ETH staking works differently than earning yield on cash or stock appreciation
If the cash/stock grow 7% YoY, each annual $ amount is used as the new base for that growth. ie your assets compound without you really thinking about it
Idea
Typical money-decision-mkaing concepts also need to be unravelled to truly understand whatâs going on
Time-Value of Money = idea that money is worth less in the future than it is now, building on three fundamental variables
Inflation = same money buys less in the future
Opportunity Cost = Money you have today can be invested / earn yield (and that gain will always be greater now than it is later when its had less time to be invested)
Uncertainty = investments do not come without risks