Example of how a Residential GENERATOR will become LESS EXPENSIVE over time, in terms of BITCOIN.


The installation of a residential generator in 2012 cost about $9000 installed. Adjusted for inflation, how much would that same generator cost in 2024 and how much cheaper would it be if it was purchased in bitcoin?

To calculate the cost of a residential generator from 2012 adjusted for inflation to 2024:

1. Inflation Adjustment:

  • According to the U.S. Inflation Calculator (www.in2013dollars.com), the cumulative inflation rate from 2012 to 2024 is approximately 37.49%.
  • Therefore, the cost in 2024 dollars would be:

9000 dollars×(1+0.3749)=9000×1.3749=$12,374.10

2. Bitcoin Cost Analysis:

  • To find out how much cheaper it would be if purchased with Bitcoin, we need to look at Bitcoin’s price in both 2012 and 2024.
  • In 2012, the average price of Bitcoin was extremely low; for example, in January 2012, Bitcoin’s price was around $4.58 per BTC (based on the provided financial data).
  • By November 12, 2024, Bitcoin’s price reached $89,604 per BTC according to Forbes (www.forbes.com).
  • Cost in 2012 BTC:

90004.58≈1965 BTC

  • Cost in 2024 BTC:

12,374.1089,604≈0.138 BTC

  • If we had bought the generator in 2012 with Bitcoin, by 2024, those 1965 BTC would be worth:

1965×89,604=$176,059,160

  • This shows that if you had spent Bitcoin to buy the generator in 2012 and sold that Bitcoin in 2024, you would have had a significant financial gain, but this does not directly answer how much cheaper it would be in Bitcoin terms for 2024 because the context of the question suggests comparing the cost in 2024 dollars to 2024 Bitcoin price, not hypothetical gains from 2012.
  • However, if you’re asking how many Bitcoins it would take in 2024 to buy the same generator, given its inflation-adjusted price:
  • In 2024, with a Bitcoin price of $89,604, the generator would cost:

12,374.1089,604≈0.138 BTC

  • Therefore, in 2024, the generator would be significantly cheaper in Bitcoin terms compared to 2012 due to Bitcoin’s price increase over the years. However, this calculation does not reflect the actual purchasing power or cost savings from 2012 to 2024 but rather the conversion at current prices.

Conclusion:
• The generator’s cost in 2024, adjusted for inflation, would be approximately $12,374.10.
• In Bitcoin terms, in 2024, it would cost about 0.138 BTC, which is considerably less in terms of Bitcoin quantity compared to what it would have cost in 2012 due to the dramatic increase in Bitcoin’s value over that period. However, this does not imply purchasing it was cheaper in real dollar terms but in how many Bitcoins you’d need in 2024.

 

 

https://www.nerdwallet.com/calculator/inflation-calculator

https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator