Savings is separate from investment with the stated goal of cash flow. Bitcoin is optimized for saving. Also, many Bitcoiner’s save in way (distributed multi sig) that isn’t immediately accessible.
This was an excellent panel - with nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z nostr:npub1klkk3vrzme455yh9rl2jshq7rc8dpegj3ndf82c3ks2sk40dxt7qulx3vt nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a nostr:npub1sfhflz2msx45rfzjyf5tyj0x35pv4qtq3hh4v2jf8nhrtl79cavsl2ymqt - well worth a watch.
https://www.youtube.com/watch?v=sA4jzHIPj7A
A couple of separate but interlinked points made in this. First - is Bitcoin a cheatcode? No, strictly speaking - it's just money as it should be with a fair set of rules, but might just feel like that if you're early in its adoption phase.
Secondly - the concept that holding Bitcoin in its purest form is actually high time preference, not low. Reason being - you are holding it to be immediately accessible, rather than investing it into projects requiring capital with an expectation of greater returns than you put in over time.
My view is the reason this feels unintuitive is linked to (1) - it's an observation best framed in a wholly bitcoin denominated world. The hurdle rate (in bitcoin terms) is incredibly high during bitcoin's adoption phase. Imagine a simple project like building a house with materials and then selling it, and trying to make money in bitcoin terms. Which is why only bitcoin related projects stand much of a chance as an opportunity cost for simple holding bitcoin. Bitcoin only VC's have a tough (but noble..) pursuit.
Discussion
Yep - agree generally and that Bitcoin encourages a lower time preference vs fiat money. The part for me that I hadn’t recognised was that all else equal, saving is higher time preference than investment. I don’t think multi sig makes too much difference in this context.
Ironically, the past year I used an inheritance to start new construction company (single family homes). I felt that using my capital to build out a company (cash flow) would be the best way to get more Bitcoin in the long run. So in this situation I’m shooting for the opposite dynamic - investment in short-term cash flow sacrificed for more long-term savings.
