Ashish gamer world pfp
Ashish gamer world
@ba1
Hyperbolic Discounting: Why We Prefer Instant Rewards Over Bigger Future Gains ๐Ÿ’ฐ๐Ÿ•ฐ๏ธ @hyperbolic_labs
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Ashish gamer world pfp
Ashish gamer world
@ba1
1/ Ever wondered why people choose $50 today over $100 a year later? ๐Ÿค” This behavior is called Hyperbolic Discountingโ€”a psychological bias that makes us favor immediate rewards, even if waiting is more beneficial. Letโ€™s break it down! ๐Ÿงต๐Ÿ‘‡
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Ashish gamer world pfp
Ashish gamer world
@ba1
/ What is Hyperbolic Discounting? Itโ€™s a cognitive bias where we value rewards disproportionately based on time. Instead of a rational, linear approach, our decision-making follows a hyperbolic curveโ€”we strongly prefer instant benefits over delayed ones.
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Ashish gamer world pfp
Ashish gamer world
@ba1
3/ Example of Hyperbolic Discounting Imagine two choices: โžก๏ธ $50 today OR $100 in a year โžก๏ธ $50 in 10 years OR $100 in 11 years In the first case, most choose $50, but in the second, they wait for $100! Why?
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Ashish gamer world pfp
Ashish gamer world
@ba1
4/ Why Does This Happen? ๐Ÿ”น Our brains are wired for instant gratification (dopamine rush!) ๐Ÿ”น The "present" feels more real than the future ๐Ÿ”น Uncertaintyโ€”waiting feels risky, even when the reward is guaranteed
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Ashish gamer world pfp
Ashish gamer world
@ba1
5/ Real-World Examples of Hyperbolic Discounting ๐Ÿ›’ Shopping: Flash sales & discounts manipulate this bias! ๐Ÿ” Health: Choosing junk food now over long-term fitness ๐Ÿ’ธ Investments: Spending now vs. saving for retirement
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Ashish gamer world pfp
Ashish gamer world
@ba1
6/ Hyperbolic Discounting in Finance ๐Ÿ’ฐ Ever wondered why people struggle to save money? Because spending now feels better than saving for the future. This is why:
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Ashish gamer world pfp
Ashish gamer world
@ba1
7/ Hyperbolic Discounting in Crypto & Trading ๐Ÿ“ˆ ๐Ÿš€ Many traders sell early instead of holding for bigger profits ๐Ÿ“‰ FOMO-driven investments happen because people prefer instant gains
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Ashish gamer world pfp
Ashish gamer world
@ba1
8/ How to Overcome Hyperbolic Discounting? ๐Ÿ”น Commitment Devices โ€“ Automate savings/investments ๐Ÿ”น Visualize Future Rewards โ€“ Imagine long-term benefits vividly
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