I agree about the potentials for cultural innovation and revitalization on a Bitcoin standard. It's one of the most inspiring dimensions of hard money - when we no longer need to think about money and inflation and can focus on more important matters of culture.
I was curious some time ago to explore how much of our savings are lost due to inflation.
As I went ahead and wrote a short program, I found that at 2% yearly inflation and zero taxes, we experience a ~35% loss of purchasing power on our accumulated savings over a 45 year career.
Since we are aware that the CPI figures are politically cherrypicked and don't measure the actual cost of living, a ~7% yearly inflation will better matche the expansion of the money supply (M2) and the value increase of the stock market.
At 7% yearly inflation and zero taxes, we lose ~71% of purchasing power on savings over a 45 year career.
Add taxes and we lose more than 80% of our purchasing power on savings during a normal career.
Below are four different examples of cumulative inflation visualized on a year-by-year basis.
By showing the data I hope to visualize the problems of inflation with some additional clarity. When we have ~3% left of our savings from 45 years ago, we enter mindboggling territory of theft.
#Inflation