Vitalik Buterin pfp
Vitalik Buterin
@vitalik.eth
Bought my standard drink at starbucks (hot venti green tea) in Switzerland. Cost was 6.20 CHF. In 2014 it was 5.60 CHF. 11% price increase in 11 years = 1% annual inflation. Impressive job 🇨🇭!
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Suppoint pfp
Suppoint
@suppoint
Using discrete annual compounding, we model price as P(t) = P₀ × (1 + r)^t. With P₀ = 5.60 CHF, P(t) = 6.20 CHF, and t = 11, we solve: (1 + r)^11 = 6.20 / 5.60 ≈ 1.1071 => 1 + r = (1.1071)^(1/11) ≈ 1.0093 => r ≈ 0.0093, or approximately 0.93% annual inflation rate. Not bad, considering most central banks can’t even do basic exponentials.
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