brilliant insight that i first heard about in saifdean’s bitcoin standard. makes sense that something we take for granted like purchasing power of our money - when that gets eaten away by inflation slowly over decades it subconsciously affects our incentives then eventually our health like buying cheaper less nutritious food.
when money works like on a hard money system, it encourages a low time preference mentality. we take for granted that hard work pays off and that we can store away savings for the future and the purchasing power will be able to cover our necessities and some luxuries every now and then.
but when money is broken it encourages a high time preference mentality. it’s hidden from the public that because the purchasing power is being devalued through central bank policy is the reason why our hard work doesn’t pay off and that what we save isn’t worth as much in the future and that we can’t afford even the necessities so the incentive is to go into debt and take bigger speculative risks just to keep afloat.
looking forward to the next episode 👏
pixel lust /
npub1xe…s5467
2023-09-14 15:09:08
in reply to nevent1q…xnqk
Author Public Key
npub1xe768m8drvnfzn8wvxtr0pa5pwmn96ug3jy4qsdsfdpvdmvph5hqqs5467Published at
2023-09-14 15:09:08Event JSON
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"content": "brilliant insight that i first heard about in saifdean’s bitcoin standard. makes sense that something we take for granted like purchasing power of our money - when that gets eaten away by inflation slowly over decades it subconsciously affects our incentives then eventually our health like buying cheaper less nutritious food.\n\nwhen money works like on a hard money system, it encourages a low time preference mentality. we take for granted that hard work pays off and that we can store away savings for the future and the purchasing power will be able to cover our necessities and some luxuries every now and then. \n\nbut when money is broken it encourages a high time preference mentality. it’s hidden from the public that because the purchasing power is being devalued through central bank policy is the reason why our hard work doesn’t pay off and that what we save isn’t worth as much in the future and that we can’t afford even the necessities so the incentive is to go into debt and take bigger speculative risks just to keep afloat. \n\nlooking forward to the next episode 👏",
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