Time preference

How much you value the present versus the future. Low time preference = patient. High = impulsive.

Time preference is an economics concept that describes how much an individual values present consumption versus future consumption. Low time preference means you prefer to defer gratification — save for later, invest in long-term outcomes, take care of your future self. High time preference is the opposite: spend now, worry later.

Time preference matters in Bitcoin specifically because Bitcoin rewards low-time-preference behaviour disproportionately. Holding through volatility for a decade has historically outperformed every form of trading. Saving small amounts consistently has produced extraordinary outcomes for the patient.

For families, time preference is one of the most important things to teach. The marshmallow-test research shows that kids who can wait outperform those who can't in almost every measurable life outcome. Bitcoin gives you a way to make the lesson concrete — "your sats are growing, and you can spend them or wait."

Learn this in our courses

Course topic

Investing & wealth

Long-term wealth-building with Bitcoin. Strategy, taxes, and the psychology that separates winners from quitters.

Course topic

Inflation & money

Why prices keep rising and what to do about it. The history of money, the mechanics of inflation, and how Bitcoin breaks the cycle.

Related terms

Glossary

DCA

Dollar-Cost Averaging — buying a fixed amount of Bitcoin on a regular schedule, regardless of price.

Glossary

Sats

Short for satoshis — the smallest unit of Bitcoin. 100 million sats = 1 BTC.

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