🧠 The Psychology of Money Meets The Bitcoin Standard 💰
Most people believe financial success is about making smart choices, but the truth is: it’s more about behavior than knowledge. 📊💡
Morgan Housel’s The Psychology of Money teaches that wealth is built through habits, patience, and emotional control.
Saifedean Ammous’ The Bitcoin Standard explains how sound money (money that holds its value over time) changes how people save, invest, and build wealth.
One key idea connects both books: Time Preference. Let’s explore how this concept can shape your financial future. 🚀
⏳ What is Time Preference?
Time preference is an economic concept that describes how much you value the present vs. the future.
🔺 High Time Preference = You prioritize instant rewards.
Example: Splurging on fast shopping, junk food, and impulse buys, even if it provides no lasting benefit. ❌
🔻 Low Time Preference = You prioritize long-term benefits.
Example: Saving, investing, and making disciplined financial choices, even if it means delaying rewards today. ✅
⚖️ Bitcoin vs. Fiat: A Tale of Two Mindsets
Fiat Money & High Time Preference Decisions 💸🔥
🛍️ Fast Shopping: Spending impulsively on unnecessary items because the money loses value anyway.
🍔 Junk Food & Quick Gratification: Choosing short-term pleasure over long-term health.
💳 Living Paycheck to Paycheck: Spending everything because inflation erodes savings.
🎢 Chasing Hype Investments: FOMO-driven decisions lead to risky, short-term speculation.
Bitcoin & Low Time Preference Decisions 🏆📈
🔒 Saving Instead of Spending: Bitcoin’s fixed supply encourages long-term holding rather than mindless consumption.
🥩 Quality Over Quantity: Prioritizing real assets, healthier food, and sustainable purchases.
💰 Thinking in Decades, Not Months: Building generational wealth instead of chasing get-rich-quick schemes.
📊 Investing in Knowledge & Skills: Understanding how money works instead of reacting emotionally.
💎 Bitcoin: The Ultimate Low-Time-Preference Asset
Unlike fiat currencies that lose value over time due to inflation, Bitcoin’s fixed supply of 21 million coins makes it a powerful long-term savings tool.
🔹 Why is this important?
🏦 Fiat loses value → Governments print more money, reducing your purchasing power.
🏆 Bitcoin holds value → Its scarcity encourages long-term thinking and wealth preservation.
📖 Ammous’ Insight:
Historically, societies that used hard money (like gold) thrived, while those relying on inflationary money often collapsed.
🏗️ The Ultimate Wealth Mindset: Play the Long Game
📌 Most people lose money because they think short-term.
📌 The best investors think in decades, not months.
📌 Bitcoin’s value isn’t just its price—it’s in its ability to preserve wealth over time.
