**Cryptocurrency** is still an industry full of speculation and people looking for everything to moon.  We get it; it is a lot of fun.  Certainly, there are people out there who made bank from this very approach.

The early Bitcoin HODLers are now millionaires.  Just think what it would be like to own 100 BTC.  Considering that 10K were used for two pizzas means that people were tossing them around.  Isn't this always the case?

Unfortunately, as time passes, this is not the best strategy.  That does not mean there isn't the chance to find the next "big one".  We know the industry is still young with a ton of **growth potential**.  However, most is not going to bring people Lambos.

Everyone on Hive got a wake up call about the [20% APR on HBD in savings](https://leofinance.io/@edicted/20-interest-rate-on-hbd).  When this was announced, it brought a new mindset to people.  Even thought 12%, the previous amount, is strong, 20% puts the return in elite status.

After all, it gives [everyone on Hive the potential to be Warren Buffett](https://leofinance.io/@taskmaster4450le/now-everyone-on-hive-can-be-warren-buffett).

# LBI Goal 

Long before we saw this transformation, @lbi-token was ahead of the field.  This fund opened up with the goal of achieving a 20% APR.  The reason for this target is that it is the road to enormous growth.  When returns are generated at a 20% rate and that is compounded, the numbers over longer periods of time get very sick.

From the above linked post, we see this:

<center>![image.png](https://images.hive.blog/DQmcrhPTdyAxTaEmpXhPfH3cbbEyPdHJfpGaBboyUWse3qa/image.png)</center>

This is a start of $100, adding $10 a month, while compounding 20% annual returns monthly.  It is done over a 30 year period of time.

That is why LBI always focused upon the return.  The raw numbers do not matter as much as the compounding.  We spend much of the first year not paying dividends to fill the pool as much as we could to let it compound.  The reason can be seen in the graph that was produced.

People truly need to understand how powerful a 20% return is.  This is what Warren Buffett was able to achieve over a half century.  It led to him being the richest man in the world for a number of years.

The goal of LBI is to keep growing at a rate that makes it rival some of the big numbers tossed around.  To achieve that, we are going to need consistent activity coupled with **time**.  This is the key factor.

# Small Funds Can Be Powerful

People often overlook how powerful small funds can be.  LBI doesn't have thousands of investors.  Nor does it have billions of dollars.  However, that does not mean it is weak.  LBI can pack quite a punch when it comes to return.  We are now getting to the point where **yield** is something people are focusing upon.

The initial target can be enhanced by the fact that some HBD in savings can achieve the same end.  That means we can often find some larger returns, simply by incurring a bit more risk.  

What is most important is the impact it has on each person's holdings.  Ultimately, that is all anyone cares about.  The size of this, that or the other thing mean little.  How much of it is mine, that is what people are concerned about.

The goal is to give people an opportunity to grow their holdings over time.  Through the combination of activity along with passive returns, we can see how success is achieved.  The first year, LBI posted over a 60% return.  That is nothing to sneeze at.

We cannot promise that will be the rate each year.  In fact, it gets tough to keep that pace up.  However, we now can see how the 20% annual target is right on.  Of course, that now got easier to achieve.

For the most part, true wealth builders focus upon **return**.  They understand that making money is a marathon not a sprint.  The quick hit artists tend to lose things quickly.  Anyone can get lucky and fall into a moonshot.  It is difficult to keep finding them.

With that in mind, LBI will do its best to find the "magical touch".  However, even if it doesn't get on the rocket ship, it will keep growing at a steady pace.  

As we all can see, 20% each year adds up over time.

Keep this in mind the next time you see some risky flashy, high APR intro rate DeFi project.  Sometimes the risk isn't work the effort.

Article by @taskmaster4450le.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@lbi-token/lbi-had-the-yield-focus-before-the-crypto-transition)