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@bemxio
Last active August 22, 2024 14:59
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A Python script for simulating a currency based on a couple of parameters. Requires `numpy` and `pandas` to be installed.
#!/usr/bin/python3
"""
This is free and unencumbered software released into the public domain.
Anyone is free to copy, modify, publish, use, compile, sell, or
distribute this software, either in source code form or as a compiled
binary, for any purpose, commercial or non-commercial, and by any
means.
In jurisdictions that recognize copyright laws, the author or authors
of this software dedicate any and all copyright interest in the
software to the public domain. We make this dedication for the benefit
of the public at large and to the detriment of our heirs and
successors. We intend this dedication to be an overt act of
relinquishment in perpetuity of all present and future rights to this
software under copyright law.
THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.
IN NO EVENT SHALL THE AUTHORS BE LIABLE FOR ANY CLAIM, DAMAGES OR
OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE,
ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
OTHER DEALINGS IN THE SOFTWARE.
For more information, please refer to <https://unlicense.org>
"""
import numpy as np
import pandas as pd
# parameters
percentage_formatter = lambda n: f"{n * 100:.2f}%" if n else ""
initial_price = 1.00
initial_supply = 3600
sensitivity = 0.1
damping_factor = 1.0
buffer_factor = 0.1
buffer_size = 0.05
hours = 24 * 365
# arrays
np.random.seed(42)
prices = np.zeros(hours)
supplies = np.zeros(hours)
demands = np.random.normal(initial_supply, initial_supply * 0.5, hours)
daily_inflation = np.zeros(hours // 24)
monthly_inflation = np.zeros(hours // 24)
# initial values
prices[0] = initial_price
supplies[0] = initial_supply
# main simulation loop
for t in range(1, hours):
# ensure demand is positive
demands[t] = max(0, demands[t])
# update the supply and price
ratio = demands[t] / supplies[t - 1]
prices[t] = prices[t - 1] * (1 + sensitivity * (ratio - 1))
supplies[t] = max(0, supplies[t - 1] - demands[t])
# calculate the inflation percentage
if t % 24 == 0:
current_cost = 1 / prices[t]
previous_cost = 1 / prices[t - 24]
daily_inflation[t // 24] = (current_cost - previous_cost) / previous_cost
if t % (24 * 30) == 0:
current_cost = 1 / prices[t]
previous_cost = 1 / prices[t - (24 * 30)]
monthly_inflation[t // 24] = (current_cost - previous_cost) / previous_cost
# refill the supply
supplies[t] += initial_supply * prices[t] * damping_factor
if prices[t] > initial_price + buffer_factor:
supplies[t] += initial_supply * buffer_size
elif prices[t] < initial_price - buffer_factor:
supplies[t] -= initial_supply * buffer_size
# create a DataFrame
pd.set_option("display.float_format", "{:.4f}".format)
df = pd.DataFrame({
"Hour": np.arange(hours),
"Price (USD)": prices,
"Cost of $1": 1 / prices,
"Supply": supplies,
"Demand": demands
})
df2 = pd.DataFrame({
"Day": np.arange(hours // 24),
"Daily Inflation (%)": daily_inflation,
"Monthly Inflation (%)": monthly_inflation
})
df.to_html(
"rundown.html",
justify="center",
index=False
)
df2.to_html(
"inflation.html",
formatters={
"Daily Inflation (%)": percentage_formatter,
"Monthly Inflation (%)": percentage_formatter
},
justify="center",
index=False
)
print(df, df2)
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