Methodology
Time-Theft Calculator
This page documents exactly how the inflation impact simulation works — every formula, every data source, every assumption. Nothing is hidden.
What does it measure?
The Time-Theft Calculator estimates how much purchasing power a person has lost over their working lifetime due to monetary inflation. It compares the real value of earnings under the current fiat system against a hypothetical system where money creation is symmetric (equally distributed to all participants).
The term “time theft” refers to the concept that when inflation erodes your purchasing power, it effectively takes back a portion of the time you spent earning that money — without your consent or awareness.
The Formula
Purchasing Power Decay
PP(t) = (1 / (1 + r))^t × 100PP(t) — Purchasing power at year t, indexed to 100
r — Average annual inflation rate for the selected country
t — Years since entering the workforce (age 20)
Cumulative Inflation Loss
L = Σ (I × r × (1 / (1 + r))^t)L — Total cumulative loss in local currency
I — Annual income (monthly × 12)
r — Annual inflation rate
t — Year index (0 to years worked)
UVD Equivalent Preservation
UVD_gain ≈ L × 0.85Conservative estimate: a symmetric monetary system would preserve approximately 85% of the inflation loss. The 15% discount accounts for transaction costs, network growth dynamics, and the fact that perfect price stability is a theoretical ideal.
Data Sources
Inflation rates used in this simulation are long-term historical averages derived from official central bank and international organization data:
Assumptions & Limitations
Constant inflation rate
We use long-term historical averages. In reality, inflation fluctuates year-to-year, sometimes dramatically. The model simplifies this to show the structural trend, not short-term volatility.
Work start age: 20
The model assumes workforce entry at age 20. This is a reasonable median for developed economies. Actual entry varies by education level and country.
No wage growth adjustment
The model measures purchasing power of a fixed income level. In practice, wages often partially adjust to inflation — but consistently lag behind it, which is the core of the Cantillon Effect argument.
UVD preservation estimate
The 85% preservation factor is a conservative modeling assumption. The actual performance of a symmetric monetary system depends on adoption dynamics, network size, and governance parameters that are not yet empirically determined.
Source Code
The complete simulation engine is open source. The calculation function is implemented in TypeScript:
function calculateTimeTheft(
birthYear: number,
countryCode: string,
monthlyIncome: number = 3000,
currentYear: number = 2025
): TimeTheftResult {
const country = COUNTRY_INFLATION[countryCode];
const workStartYear = birthYear + 20;
const yearsWorked = currentYear - workStartYear;
const annualIncome = monthlyIncome * 12;
// For each year worked:
for (let i = 0; i <= yearsWorked; i++) {
// Fiat purchasing power decays exponentially
fiatPP = (1 / (1 + country.rate))^i × 100
// Cumulative loss compounds over time
cumulativeLoss += annualIncome × rate
× (1 / (1 + rate))^i
}
// Total loss percentage
lossPercent = (1 - PP_final / 100) × 100
// Conservative UVD preservation
uvdGain = totalLoss × 0.85
}Full source: simulation.ts on GitHub