Is USD (or your local currency) the best way to track your net worth?

Kubera lets you track your net worth over time in interesting ways that challenge your conventional thinking on how you view your wealth.

Option 1 - USD (fiat currency), the most understood

Most people track their net worth in a fiat currency like USD. For example, here is the net worth chart of a portfolio that grew from $770K to $6.23M over 4 years.

An impressive 8.1x increase, at a CAGR of 75.77%‍

Fiat currencies like USD, while most common are subject to the vicissitudes of monetary policies, corruption and geopolitics. Ask anyone in Turkey, Argentina or Venezuela, and they will readily agree.

Option 2 - Gold, a physically scarce asset

Gold has been used for over 5000 years as a store of value. It has proven to be a remarkably good store of value over a very long period of time. What is the increase in net worth of the same portfolio in terms of ounces of gold?

It grew from oz 443 to oz 3,086. 7x increase, at a CAGR of 68.82%

Option 3 - Bitcoin, a digitally scarce asset

Bitcoin’s popularity as a digital store of value has surged in recent years. Lets see what is the increase in wealth in terms of BTC?

It grew from ฿80 to ฿125. A mere 1.6x increase, at a CAGR of 12.79%.

Option 4 - Oil, energy you can deploy

This is an interesting one. I tend to think of wealth as energy you can deploy to improve the quality of your life. The per capita energy consumption in developed countries is higher than those in developing countries, enabling residents of developed countries to enjoy a higher standard of living.

So how did this portfolio fare over the large 4 years in terms of the ability to deploy energy?

It grew from 20,263 barrels to 75,911 barrels. 3.7x increase, at a CAGR of 42.80%

Conclusion

Tracking your wealth from multiple vantage points helps you get a deeper understanding of what money really is.

Kubera is the only tool in the market that allows you to accomplish this.

- Rohit Nadhani