Crypto seems to put a spell on people. A friend of mine turned 100$ into 17.000$ in two years by investing in a coin called Theta. Listening to influencers and altcoin diggers and it sounds inevitable that we are going to be rich. Quickly as well. Yes, there are fantastic opportunities in the crypto space, but I am also certain that many of us know that it takes many years of smart investing before we can expect a huge return. But it’s still difficult to have a long-term perspective on investing. What to do?
To change our behaviour and get a long-term perspective in life we need to know why our
focus tend to be short term. Science tells us that one reason is that our brains are wired to prioritize short-term gains over long-term ones. This is known as temporal discounting, and it means that we
tend to place a higher value on rewards that are closer in time, even if they are smaller than rewards that are farther away. I call it Later Later Syndrome as we keep on postponing to the future what we know we should do.
In a world that is unpredictable and where survival depends on meeting immediate needs, it makes sense to prioritize immediate rewards over future ones. From an evolutionary perspective, individuals who were able to secure immediate rewards were more likely to survive and reproduce than those who focused solely on long-term goals.
Another possible explanation for temporal discounting is that it reflects a trade-off between the benefits of the present and the costs of the future. For example, people may discount future profits from a crypto purchase because they are uncertain about their ability to invest in the right coin. It may also be easier to discounting future potential profits if they feel that they may be able to make better use of the money in the present moment. Another reason is that we live in a world that is geared towards instant gratification. We are used to getting what we want quickly, whether it’s a
package delivered to our doorstep within hours or a movie streaming on our screens with just a few clicks. In contrast, long-term investments can require patience and discipline, which can be difficult to maintain in a world that is constantly pushing us to seek out immediate rewards.
Finally, long-term investments can be seen as risky, as they often require a significant amount of capital and a willingness to ride out market fluctuations. This can be intimidating for many people, particularly those who are new to crypto investing or who have had negative experiences in the past. Considering the horrible market of 2022, no wonder we rather spend money on a night out than some crazy crypto asset that might go to the moon…
Don’t do what I did. I bought some Porn Rocket Tokens after drinking wine… I digress.
I am sure you get the point of having a long-term perspective. Let’s get better at it.