Assumption 1: Inflation average is 10 percent per year.
10% spread evenly over the year.
Next is measure the purchasing power loss per $1 of cash of each moment in time.
Loss of value per year on 1 dollar of fiat:
- Per year: $0.10
- Per month: $0.10 / 12 ≈ $0.00833 (0.833%)
- Per day: $0.10 / 365 ≈ $0.000274 (0.0274%)
- Per hour: ≈ $0.0000114
- Per minute: ≈ $0.00000019
- Per second: ≈ $0.0000000032
For scale:
- $10,000 loses ≈ $1,000 per year
- ≈ $2.74 per day
- ≈ 11.4¢ per hour
Since some years inflation rates will value from 8 percent to 10+% during global events like the covid plague, wars, and global shocks like supply chain disruptions. This model is more for visualizing what the past historical dollar performance has been and what is likely expected of the dollar according to its past rates.
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