The concept of time preference explains why individuals value present goods more than future goods from "summary" of The Bitcoin Standard by Saifedean Ammous
Time preference is a crucial concept to understand because it lies at the heart of human action and decision-making. It is the underlying reason why individuals tend to value present goods more than future goods. This concept is deeply ingrained in human nature, as it reflects our innate desire for instant gratification and satisfaction. When individuals make choices between present goods and future goods, they are essentially expressing their time preferences. People generally prefer to consume goods and services now rather than later, as immediate consumption brings more utility and satisfaction. This preference for present goods is driven by our biological and psychological makeup, which prioritize short-term gains over long-term benefits. The concept of time preference is closely linked to the idea of discounting future value. The further away a future reward or benefit is, the less value it holds for individuals in the present moment. This phenomenon is k...
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