#meme #memes #memestr

Time preference is a foundational concept because it provides deep insights into human behavior and the inner workings of the economy. At its core, time preference captures people's subjective preferences for current versus future consumption. This preference to satisfy wants sooner rather than later is a ubiquitous feature of human action. Time preference explicates people's natural incentive to consume now rather than save and wait. It therefore helps elucidate saving and consumption patterns across society.

Moreover, time preference is embodied in the interest rate, which is the price paid to forego present consumption. Interest rates arise naturally from individuals' varying time preferences and willingness to exchange present for future goods. Interest rates therefore signal society's time preferences and coordinate distinct preferences into a coherent structure of production over time. They provide entrepreneurial insight into the tradeoffs between current and future consumption, allowing for rational allocation of resources across the stages of production.

Time preference illuminates intertemporal decision making, the phenomenon of interest, saving behavior, capital structure, and economic coordination over time. By analytically grounding many disparate economic phenomena in the simple fact of human preference for present over future, time preference facilities a unified and profound understanding of the market economy. Time preference thus sits at the heart of economic insights about prices, capital, business cycles, and the transcendent ability of markets to align individual choices and social outcomes over time.

Having a plan can indeed be beneficial in many aspects of life, but when it comes to economic systems, the perspective differs. Central planning is hubristic - no group can possess enough knowledge to efficiently allocate resources across an economy. The free market's price system provides a decentralized mechanism for gathering and transmitting necessary knowledge. Competition and free exchange incentivize local knowledge and adaptation. Economic planning disrupts this emergent order by overriding market signals with coercive state power. The conceit that central decision-making is superior reflects a faith in coercion and disdain for individuals' dignity to choose. Spontaneous order harnesses more knowledge than any top-down scheme. It's not a matter of "no plan" but rather decentralized planning by countless actors, which can often lead to more efficient resource allocation and innovation compared to centralized planning in socialism.

The Binance collapse would melt faces.

The price is what makes all these people that want nothing to do with Bitcoin and cryptos....start looking again.

Price is the only thing that matters to them.

I'd like to agree with this...

But then I remember Apple has a $2 trillion market cap. They got there through a closed system, dominate with all their slick network effects & Apple specific products that you need to buy with the phone.

Why?

#proofofwork

Damn. 🤦🏿‍♂️🤦🏿‍♂️