A Game Of Time Preference

Hey Jessimpatient ones

Just like many of you I've had to kick the habit of being an impatient little shit that throws their toys out of the cot when they don't get their way.

In a world of instant gratification and the constant pitfalls that is this societal level marshmallow test, it is easy to fall for having your needs met as soon as possible and getting that dopamine hit, rather than building anything sustainable.

The system is designed for us to fall into many pitfalls that we normalise, debt, obesity and discontent for your labour earning you an income are all part of seeing a time preference move to instant satisfaction.

Living in the Matrix of money

The fiat money system and MMT or how I like to call it More Money Today, has thrown out price signals, burned savers and made it more attractive to live on debt than savings. Time has no value when we focus on the present.

Very few are thinking of their future as they cater to the needs of now. Since none of us stops to think about the future, save or plan for it, what does that do to us?

Remember every action we perform in repetition, rewires our brain. So by extension, fiat money has hacked society to do things that are illogical and harmful, but in a synthetic system, you can't feel it.

It's like having an injury, and instead of resting, you take a pain injection and play on. The pain might go away, but the damage doesn't, and you could be making the damage worse.

Pain is a signal there to protect you, just like price signals are a sign that protects consumers, and without it, many are vulnerable to poor capital allocation.

You're a different person in the future

Every year you learn new things, you change your habits, you want new things for yourself, you change your perceptions, you experience new things, that's the little thing called life.

However, in a fiat money system where the time preference is to spend now to get the most out of it, you are more often than not making an inferior purchase, a compulsive purchase, a purchase you may regret because you don't know the person you are going to be in 10 years.

In a hard money system, you bank on your future, you're encouraged to save, do due diligence, evaluate if the deal is not just good for you now but worth the opportunity cost exchange in the future too.

Don't wreck your balance sheet

I know many people don't see it like this, but you have a balance sheet, just like a company does, you own assets and liabilities, and you generate an income. Just like any business you're meant to generate profits you can use for the rainy days and to invest in improving your income generation.

Instead, we destroy our balance sheets to strengthen others and then wonder why there are monopolies.

We take our hard-earned capital and put it onto the balance sheet of Apple and BMW and Coca Cola, and we don't get anything in return.

I would understand buying equity, but overextending yourself to by depreciating products with a large part of your net worth is not a rational decision to me.

When you have a short time preference for money it feels like it's burning a hole in your pocket and consumers would much rather spend it on products today or anything today than wait for it to lose value tomorrow and get less.

I understand this way of thinking, most of it is actually subconscious thinking and motivation, but its something I think we should actively fight against and try to reprogram ourselves.

Short the banks, and go long on humanity

As much as I like to blame the government, when it comes to consumer money banks are taking the "lions share" of the responsibility since they create and manage the vast majority of a countries money through credit expansion. When you hold fiat you actively asking banks to abuse your trust in their programs, products and rampant speculation.

You are assisting in the fiat money stealing, indirectly yes but you're purchasing power is actually not under your control. While it's sitting in the bank, they're speculating on your behalf, and most times it's not in your favour or benefit.

Moving into hard money is essentially shorting the banks, shorting fiat, shorting government and shorting the idea that a low time preference is the better way to live.

When you understand the madness of the crowd, you'll understand why this is the single greatest trade of the century, if you can be patient enough.

Time has value, yes it is suppressed, but it cannot be held back forever, it may not manifest in the fiat system but actually manifest in non-correlated assets, which is what I am banking on.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

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