Bitcoin Buys Freedom

If there is one lesson you learn as a Bitcoiner, it is that of time preference. Time preference isn’t a common expression outside of Bitcoin, but most would be familiar with the concept: delayed gratification.

When we “lower our time preference,” we invest time, energy, and capital now in the things that will matter most further down the line.

Perhaps you invest in building a business that won’t earn much in the short-term, but could eventually afford you freedom of time and money to do what you want later.

If you invest in spending quality time with your kids, you may reap the benefits of future Christmas dinners surrounded by a large, loving family when you are older.

“High time preference” behavior, though, is the status quo. We eat junk food, play video games, binge on TV shows, neglect working out, spend frivolously on Amazon… and go into debt to buy the nicest house and car we can afford.

One thing I’ve noticed in myself since adopting Bitcoin as my savings vehicle is how high time preference I am with any fiat I hold, and how low time preference I am with my Bitcoin.

I can always get a hold of some more fiat, even just sitting around. Heck, DOGE might be sending me a $5,000 check here soon. It’s almost like fiat grows on trees (or maybe it’s that enormous money printer they keep running at the Fed).

But if I spend my Bitcoin, it is going to be much harder to earn that same Bitcoin back. Let’s say someone saves $1,000 a month. For a moment, let’s assume they are smart and put that into Bitcoin. Today, that represents just over 0.01 BTC in savings.

But in four years, I’d venture to bet that $1,000 of fiat earns you much less - say, .001 BTC. A 10x increase in just a few years would be completely normal for Bitcoin, never mind the upside potential 10 or 20 years down the road.

So, if you choose to spend your $1,000 on a new kitchen gadget that you use one time or perhaps on some cool new upgrade to your car, you may be forfeiting $10,000 worth of purchasing power if stored it in the best savings technology (Bitcoin) and held for four years.

Even a solid 12% in the stock market for four consecutive years would only land you about $1,500. Many would pay that premium to satisfy current cravings, but few would pass on the $9,000 of upside if they thought it through.

With that mental model, you suddenly begin to question everything: “Should I really buy this thing today, or should I put it into Bitcoin and wait?”

Since finding Bitcoin I’ve noticed myself spending more of my money on “low time preference” items, such as quality food, a home garden, and various health-related products. (The only thing more scarce than Bitcoin is my time; I’d like to live life well and in optimal health).

When the world is on a full Bitcoin standard and I’m forced to spend my Bitcoin, you can bet I’ll think long and hard on how I’m going to use it. Stupid toys for my man cave? Not a chance. A swimming pool where I can make years worth of memories with my kids? More likely. Anything that doesn’t enhance my life in a meaningful way? Probably not.

Bitcoin is healing my relationship with money, and I believe it can do the same for the rest of the world. It makes me hopeful when I think about the bright, orange future we have ahead.

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