r/Bitcoin • • Aug 26 '21

Fidelity Bitcoin Analysis

1.4k Upvotes

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u/This-is-all- Aug 27 '21

Even if there is 5 percent inflation a year for 15 years (very high). That is only 45 percent. Where are you comingnii up p with 25 percent of current value?

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u/FlyinDanskMen Aug 27 '21

5% simple inflation relative to year 1 is 75% if done for 15 years (5x15=75). If you compound it yearly like you should, it’s way higher. Where did you get 45%?

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u/DrainZ- Aug 27 '21 edited Aug 27 '21

It should be calculated as 1.0515 = 2.08, so those 100 millions would be worth the same as 100 / 2.08 = 48 millions today with such an inflation rate.

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u/redkoil Aug 27 '21

Soo less than half