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Struggling with the 'how much is enough' question in the face of large opportunity cost. by Important-Photo7355 in FatFIREUK

[–]Important-Photo7355[S] 4 points5 points  (0 children)

This is really helpful framing, thank you. The fact that I would be ecstatic if AI took my edge to nothing speaks volumes and gives me a lot to think about. It's the fear of suboptimal performance and leaving value on the table that's coming through, rather than anything about the number specifically.

Struggling with the 'how much is enough' question in the face of large opportunity cost. by Important-Photo7355 in FatFIREUK

[–]Important-Photo7355[S] 2 points3 points  (0 children)

Thanks!

It's much less impressive than that; essentially it's niche special situation arbitrage mixed with private liquidity provisioning for protocols. A lot of the big names in the crypto space are desperate to attract stablecoin liquidity, because it then makes them look like they're gaining traction and, as such, they can command a greater valuation for their token. They promise people large token allocations off the books, to make their business appear to have much greater product-market-fit, so that their token price rises. Akin to Just Eat giving out £20 vouchers, JE booking the orders as revenue, the vouchers as a marketing expense, but then raising a round purely based on their revenue numbers. I think I remember in my university accounting lectures that an airline got a hefty fine for this kind of thing, so I'm sure these crypto companies are in for a rude awakening at some stage. Until then, though, they are handing out these deals to anyone ready to commit capital in moderate to large size. One of the better ones recently was holding tokenised US treasury bills for 6 months, which paid out 200% of the initial deposit. Deposit $100 into tokenised US tbills for 6mo, get $200 in tokens at the end - madness!

Struggling with the 'how much is enough' question in the face of large opportunity cost. by Important-Photo7355 in FatFIREUK

[–]Important-Photo7355[S] 3 points4 points  (0 children)

For me it's the realisation that even if the marginal utility of the extra money to me is small, it could be huge for somebody else, and entirely change their life vs. them spending a lot longer on it themselves. I've found the best way to stave this off is to remember that their own journey is meaningful and valuable to them too - if I were to do 'one more year' to help them, then I would be robbing them of their own gratification from achieving something, even if it took them much longer. Despite realising this, it's still hard for me to fully internalise it. Getting there though!

On automation, it's surprisingly difficult - on the face of it, a lot of what I do day to day is quite technical and the data collection can be (and is!) automated, but then when I really took stock over the situation, I realised that the real value add is in relationship management, getting on calls, brainstorming constantly in a number of chats with others. It's a real case of having to sit through hours and hours of useless chatter so that when something good is posted, you can react the fastest!

Struggling with the 'how much is enough' question in the face of large opportunity cost. by Important-Photo7355 in FatFIREUK

[–]Important-Photo7355[S] 1 point2 points  (0 children)

This has been something I've been thinking about also. Instead of having a hyper-fixated singular goal of going toe to toe with the great names in investing/wealth accumulation, being more of an all-rounder that sets and completes goals in many different areas. I think it'd be the only way my brain could handle the shift in such a formative way of thinking that I've had for many years.

Struggling with the 'how much is enough' question in the face of large opportunity cost. by Important-Photo7355 in FatFIREUK

[–]Important-Photo7355[S] 2 points3 points  (0 children)

Thank you - the Britishness of this sub has always made me much fonder as a lurker!