derPeter21 on Nostr: Short case study on #loss of purchasing power due to #inflation : We moved into a ...
Short case study on #loss of purchasing power due to #inflation :
We moved into a nice 4-room rental apartment in 2001. At the time, we left a € 2,500 #deposit in a #savings account. Today, my 75-year-old owner agreed that we should withdraw the deposit and the measly €100 in #interest from the savings account and exchange it for #Bitcoin.
Said - done: today we made a deposit with my favorite broker Coinfinity (nprofile…nsxf) BTC 0.0273524 for € 2,600. Let's see how long it will take us to make up for the 61% loss in purchasing power that has been stolen from us by inflation over the past 24 years.
According to https://portal.multiinvest.de/webutils/inflationsrechner/, the #purchasing power of the € 2,500 from 2001 has shrunk by -36% to € 1,594 in 2024 according to the official (nicely colored) #inflation rate of an average of 2% per year.
Since real inflation was at least 4% per year, the purchasing power of the € 2,500 from 2001 after 24 years is a maximum of € 975 (minus 61%).
We moved into a nice 4-room rental apartment in 2001. At the time, we left a € 2,500 #deposit in a #savings account. Today, my 75-year-old owner agreed that we should withdraw the deposit and the measly €100 in #interest from the savings account and exchange it for #Bitcoin.
Said - done: today we made a deposit with my favorite broker Coinfinity (nprofile…nsxf) BTC 0.0273524 for € 2,600. Let's see how long it will take us to make up for the 61% loss in purchasing power that has been stolen from us by inflation over the past 24 years.
According to https://portal.multiinvest.de/webutils/inflationsrechner/, the #purchasing power of the € 2,500 from 2001 has shrunk by -36% to € 1,594 in 2024 according to the official (nicely colored) #inflation rate of an average of 2% per year.
Since real inflation was at least 4% per year, the purchasing power of the € 2,500 from 2001 after 24 years is a maximum of € 975 (minus 61%).