ReWu on Nostr: During the holiday season, consumption traditionally spikes. People buy gifts in ...
During the holiday season, consumption traditionally spikes. People buy gifts in abundance, often financed by credit or at the expense of long-term savings. This behavior is not merely cultural – it is a direct symptom of an inflationary monetary system that encourages short-term thinking and high time preference.
Inflation and the Rise of Time Preference!
In an inflationary system, saving is systematically devalued. The purchasing power of money decreases over time, making it seem irrational to postpone consumption today in favor of saving for the future. This "spend now, rather than save" mentality raises people's time preference – they prioritize immediate gratification over long-term wealth accumulation.
Why save for the future if money loses value tomorrow?
As a result, consumption takes center stage, and Christmas often becomes the pinnacle of this trend. The outcome: masses of consumer goods that quickly lose their value and contribute little to sustainable prosperity.
Hard Money and the Promotion of Low Time Preference!
In a system with hard money – money with a limited supply that cannot be arbitrarily expanded – this dynamic shifts fundamentally. Such money retains its value or appreciates over time. This leads to a decrease in time preference: people are willing to delay consumption today to enjoy greater wealth in the future.
Why spend wastefully today if saved money will be worth more tomorrow?
Over time, hard money fosters sustainable consumption. Instead of heaps of short-lived Christmas gifts, the focus could shift to meaningful, durable investments or intangible values – experiences, education, or wealth building.
An inflationary system fuels short-term consumerism and blinds us to long-term consequences. Hard money, on the other hand, encourages patience, sustainable economic activity, and more conscious consumption. Perhaps it is time to rethink not only the gifts under the Christmas tree but also the foundation of our monetary system. #Bitcoin
Inflation and the Rise of Time Preference!
In an inflationary system, saving is systematically devalued. The purchasing power of money decreases over time, making it seem irrational to postpone consumption today in favor of saving for the future. This "spend now, rather than save" mentality raises people's time preference – they prioritize immediate gratification over long-term wealth accumulation.
Why save for the future if money loses value tomorrow?
As a result, consumption takes center stage, and Christmas often becomes the pinnacle of this trend. The outcome: masses of consumer goods that quickly lose their value and contribute little to sustainable prosperity.
Hard Money and the Promotion of Low Time Preference!
In a system with hard money – money with a limited supply that cannot be arbitrarily expanded – this dynamic shifts fundamentally. Such money retains its value or appreciates over time. This leads to a decrease in time preference: people are willing to delay consumption today to enjoy greater wealth in the future.
Why spend wastefully today if saved money will be worth more tomorrow?
Over time, hard money fosters sustainable consumption. Instead of heaps of short-lived Christmas gifts, the focus could shift to meaningful, durable investments or intangible values – experiences, education, or wealth building.
An inflationary system fuels short-term consumerism and blinds us to long-term consequences. Hard money, on the other hand, encourages patience, sustainable economic activity, and more conscious consumption. Perhaps it is time to rethink not only the gifts under the Christmas tree but also the foundation of our monetary system. #Bitcoin