Ashish gamer world
@ba1
Hyperbolic Discounting: Why We Prefer Instant Rewards Over Bigger Future Gains 💰🕰️ @hyperbolic_labs
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Ashish gamer world
@ba1
1/ Ever wondered why people choose $50 today over $100 a year later? 🤔 This behavior is called Hyperbolic Discounting—a psychological bias that makes us favor immediate rewards, even if waiting is more beneficial. Let’s break it down! 🧵👇
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Ashish gamer world
@ba1
/ What is Hyperbolic Discounting? It’s a cognitive bias where we value rewards disproportionately based on time. Instead of a rational, linear approach, our decision-making follows a hyperbolic curve—we strongly prefer instant benefits over delayed ones.
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Ashish gamer world
@ba1
3/ Example of Hyperbolic Discounting Imagine two choices: ➡️ $50 today OR $100 in a year ➡️ $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
@ba1
4/ Why Does This Happen? 🔹 Our brains are wired for instant gratification (dopamine rush!) 🔹 The "present" feels more real than the future 🔹 Uncertainty—waiting feels risky, even when the reward is guaranteed
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Ashish gamer world
@ba1
5/ Real-World Examples of Hyperbolic Discounting 🛒 Shopping: Flash sales & discounts manipulate this bias! 🍔 Health: Choosing junk food now over long-term fitness 💸 Investments: Spending now vs. saving for retirement
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Ashish gamer world
@ba1
6/ Hyperbolic Discounting in Finance 💰 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
@ba1
7/ Hyperbolic Discounting in Crypto & Trading 📈 🚀 Many traders sell early instead of holding for bigger profits 📉 FOMO-driven investments happen because people prefer instant gains
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Ashish gamer world
@ba1
8/ How to Overcome Hyperbolic Discounting? 🔹 Commitment Devices – Automate savings/investments 🔹 Visualize Future Rewards – Imagine long-term benefits vividly
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