1.16 Low Time Preference

Time preference refers to how much people value present consumption versus future consumption. High time preference means wanting things now. Low time preference means being willing to delay gratification for future rewards.

When money loses value over time (inflation), people are incentivized to spend it quickly or speculate on risky assets. This is high time preference behavior that shortens planning horizons and discourages long-term investment.

When money holds or gains value over time (deflationary or stable), people are incentivized to save, invest carefully, and plan for the future. This is low time preference behavior that builds civilization.

Bitcoin's fixed supply means it cannot be inflated away. As adoption grows and the supply remains constant, each bitcoin becomes more valuable in purchasing power terms. This encourages saving and long-term thinking.

The societies that built the greatest civilizations — the Victorians, the Dutch Golden Age, ancient Rome in its early republic — were characterized by low time preference and hard money. Bitcoin returns us to this foundation.