Low time-preference = Bitcoin \ stacker news ~bitcoin

1323 sats \ 12 comments \ @cryotosensei 17 Nov 2023 bitcoin

I wrote about my struggles with fatherhood. I’m glad I opened up, because that was how I came across the term “low time-preference”.

Stacker compared children with Bitcoin, stating how both are low time-preference assets. If truth be told, I didn’t quite understand the concept of low vs high time-preference. He was kind to get back to me and explained about both entities are long-term investments and become more valuable with time.

This prompted me to Google low time-preference and learn the meaning. Apparently, a person with a low time-preference places greater emphasis on his well-being in the more distant future. Sounds like something that would help me reframe my thinking as it takes me out of the present and “teleports” me into the future, reminding me of what’s truly important in the grand scheme of things. Classifying children together with Bitcoin is the icing on the cake since if I value Bitcoin, I should come to value kids on the same affective level.

Anyway, just wanted to ask when you came across the low time-preference concept. And whether it significantly shaped your relationship with Bitcoin.

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38 sats \ 1 reply \ @Bitman 17 Nov 2023

There's a guy called Stewart Brand, who created the influential zine The Whole Earth Catalog in the late 60's.

It was so influential that Steve Jobs saw it as a paperback Google 35 years before Google.

Some thirty years later, in 1996, Brand set up a non-profit to promote low time preference and long term thinking.

That's the Long Now Foundation: https://longnow.org/

From the getgo when visiting their site, you can see how long term they think.

They've set up various LTP projects:

-Rosetta Project - a contemporary, universal version of the Rosetta Stone to archive 1,500 languages for 10,000 years. -Clock of the Long Now an accurate, and easily repairable, clock built to last 10,000 years -Hosts talks on many subjects around LTP in SF

The talks are great and can be heard via the org's two free podcast feeds.

The org even refers to the year in a very long time preference way. They refer to the year they were set up not as 1996 but instead as 01996. This year is referred to as 02023 not 2023 - the way how things are framed in language makes a difference too.

On a more personal note, I once attended a talk by a wise old spiritual teacher, Tai Situpa, who told a story about two students who spoke about becoming enlightened:

One was impatient, with a short time preference - saying that he wanted to become enlightened in just one lifetime (instead, it was said it took him several lifetimes). The second student was far more realistic saying that he'd be happy to take 100 lifetimes - because of this attitude his mind was loose and ripe enough he attained enlightenment in a single lifetime instead.

I'd almost forgotten about that story - thanks to your post it helped to remember it.

21 sats \ 0 replies \ @cryotosensei OP 19 Nov 2023

This expanded my mind. Intriguing way of thinking and looking at things. Thanks for sharing!

93 sats \ 1 reply \ @Gar 17 Nov 2023

For me, it was the Marshmallow Experiment. Low time preference is a cognitive skill.

0 sats \ 0 replies \ @cryotosensei OP 19 Nov 2023

It makes sense to link delayed gratification with low time-preference!

40 sats \ 1 reply \ @tip_nz 17 Nov 2023

Thanks for sharing @cryotosensei. I think with low time preference there's an element of discipline, sacrifice and work involved in the present in order to benefit from the fruits of your labour in the future. Having children, saving for the future, investing in our health, building meaningful relationships, taking care of our ecosystem are all low time preference activities.

Do you find that since having kids you also started to care more about the future that you might leave behind for them? My theory is as we age, we don't have much time left (or much of a future left) we may become more high time preference. We may make decisions to sacrifice less and enjoy ourselves more in the present. But those with children may still want to save a nest egg for their kids (low time preference) vs blowing it all to enjoy ourselves (high time preference).

Just thinking whether engaging in LTP activities also lead to other LTP activities and thinking in other areas.

100 sats \ 0 replies \ @cryotosensei OP 19 Nov 2023

I think to a certain extent, it does. Since I became a parent, I have become more intentional in the workplace because I hope that whatever things I do with my limited time and energy will bring about more impact in the mid-term

56 sats \ 1 reply \ @kurszusz 24 Jan

Here is the key... "the low time-preference concept" => high timeframe thinking (long term).

I always try to use this concept (it doesn't always work), and this concept helped me to find Bitcoin also...because I'm looking for long term opportunities, and to exclude the noise (not just in the market, but in my real life also)

0 sats \ 0 replies \ @cryotosensei OP 24 Jan

Anything else besides children and Bitcoin that you think are good long-term investments

30 sats \ 1 reply \ @td 17 Nov 2023

For me at least it is one of the reasons why Bitcoin is so antithetical to modern society.

It forces one to take step back and think clearly and carefully about one's values and what one values instead of thoughtlessly jumping on to the instant gratification hamster wheel.

It's almost like being revived from a spell.

0 sats \ 0 replies \ @cryotosensei OP 19 Nov 2023

I dare say that my eyes have been opened this year

10 sats \ 0 replies \ @BitByBit21 17 Nov 2023

For me it was reading The Bitcoin Standard. I wasn't familiar with this concept. It totally changed my mindset regarding not only Bitcoin but money as a whole and its relation with how we live. Your comparison with raising kids is spot on IMO. You're betting not only on your life but on someone else's and, eventually, on the future of humanity.

10 sats \ 0 replies \ @0xbitcoiner 17 Nov 2023

The comparison between children and Bitcoin as low time-preference assets is an interesting one. Both require a long-term investment mindset, with the potential for greater value over time. This aligns with the concept of delayed gratification, which is often associated with low time-preference individuals.

It's great that you've come across this concept and found it helpful in your journey as a father. Understanding low time-preference can be a valuable tool for making decisions that align with your long-term goals and values.

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