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I work a lot of hours, which is why I like the DeFi pools so much, because they take my work earnings and put them to work, 24 hours a day - which is a couple more than I work normally myself. 

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![image.png](https://files.peakd.com/file/peakd-hive/tarazkp/23tRxX8vLRCxwXTqjDDkF2WetiuAcB1TsHZmPXpUbaLMay5mZuNafMacagjGvtsYeotrF.png)

<center><sub>I thought this was a pretty interesting picture - € and $ on one side reflected in the face of a watch, *lock and escape* on the backside of the watch, where time doesn't exist.</sub></center>

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This means that my hourly work rate is not actually what my paycheck says (I am technically not paid hourly, but monthly), as it depends on what happens with that value afterward. If for example I earned 10€ for an hour's work and then bought lunch for 10€ - the rate stands. However, if I invest that 10€ into a token and that token increases in value, the new value is what my hourly rate is, for that particular hour. Then, if I buy a token that can attract a yield on it, that hourly rate is determined by two factors, token volume and the token price. *It can go down too.* But, because it is working 24 hours a day and 7 days a week, it is constantly compounding, which means it amplifies the value of small amounts of value and potentially transforms them into much more significant amounts. 

A lot of people prefer to have something they can hold with what they earn, and then wonder why the investors make all the money and end up owning most everything. Because unlike the average person who has been told they should save at least 10% of their income (most don't), the investors are not saving any, but they are investing as much as they can into generative assets that attract a yield. Everything a bank buys for example, is done so in order to attempt to increase profits - it doesn't matter if it is an share investment into a startup, or hiring a janitor to clean the staff toilets, it is all profit seeking. 

They can work like this because they are corporations, not humans - they don't need to eat, sleep or care about anything, *they don't even die,* which means they never have to pay an inheritance transfer tax on their holdings. But, like humans, *they can hold.* And, what they hold is profit seeking assets - with even those incurring loss being used to offset the gains for tax purposes, effectively turning a loss into a win. Their entire business model and that of pretty much any corporation has one job - profit.

And they are good at it too, as they find ways to compound their values across market places in various ways, like ownership in many businesses that they then encourage usage of, so they can double down on the gains - especially when those products can be bought on credit, which is a bank product that accrues interest earnings for the bank. They have many investment faces geared for value extraction and collection, which they pool and repeat the process, again and again. 

Why DeFi is so interesting and such a threat to CeFi, is that it gives wealth instrument access to *almost anyone* to use, meaning that normal people are able to enter in and practically, be their own micro bank. And because there isn't the top heavy, centralized shareholder model to satisfy and instead they are run by Decentralized Autonomous Organizations (DAOs), the rate of return can be much, much higher. Yes, currently there is a lot of crazy too - but the top-heaviness of most business models skims a lot more than just the cream from the top, leaving dregs for the majority.

Those dregs can't keep up with the inflation rate, which those same institutions and centralized organizations are able to affect themselves. This means that the cost of living outpaces our income, so we slowly lose our quality of life, like a frog in a heating pot of water. However, we can be fooled into thinking we are earning more, as the amount of money we get goes up - but, so does the rate of interest we are paying on the constantly increasing debt we hold. 

What this means is that those who are actually benefiting from this economy are ably to fool us into thinking we are earning more, but our buying power goes down, while theirs increases, as they are beating the inflation rate, and generally by a decent margin. This gives them more power to invest into generative assets, while we are finding it harder to make ends meet. This is why fifteen years ago, 20 of the worlds richest were worth as much as the bottom 50%, five years ago it was the 10 richest, now it is the 5 or 6 richest - this is indicative of the long tail on wealth getting longer at the wealth end, fatter at the poverty and skewing heavily at the poor end. The difference between the bottom and the middle is far shorter than the distance between the middle and the top.

A lot of people see working for an hourly wage as slavery, but perhaps it is the path to freedom *if* that wage is used to generate more value, to compound that labor energy and outsize it over time. However, that requires being able to *not need that earned value* for living expenses - which can be difficult. In many cases, it is near impossible to have a little extra to invest - but for those that can, to not is to live slave to an hourly wage, priced at the same as what you earned it. 

Just like gains and losses on holdings, they do not exist until the moment of selling and this is the same for a wage. The way we spend every paycheck is going to affect what our hourly wage is. We spend it on something that has no value, the hours we used to earn it are wasted. Spend it on something that has depreciating value like a car, our hourly wage earned to pay for it comes down. Spend it on something that appreciates however, and the hourly wage goes up.

For example, it might have taken 500 hours of work at 20€ an hour to earn 1000€ for investment (10% of salary), but, if that 1000€ was for example put into Bitcoin when it was at 1000€ a token, it would be worth 37,000 today. That means that those 500 hours worked, would be valued at 46,000€ in stead of 10,000, meaning that the hourly wage moves from 20€/h to 92€/h. done consistently over the space of a year, what would have been a 40,000 earning year, turns into a 184,000 earning year, risking 10% of that 40K. That is not bad - even if it takes 5 years to realize it, as that year is worth the equivalent of 5 years full work and all that time, you had kept working. This means for someone who did this for one year only, they would have effectively doubled their salary for five years.

But, it really is hard to take that 10% and invest it into risk, but perhaps with DeFi, that risk can be somewhat mitigated as it will not only be earning on the token value, but growing in token volume also. Each day it can give a trickle of value and the longer it trickles, the more those hours that provided for it are worth. 

For me, I am trying to get out of the mindset of an hourly wage and instead look at it as mining. I mine for an hour and what I pull out of the workplace is a resource that I can use to build something more valuable than the resource is in its "raw state". This way, the mine keeps providing, even if the vein of work runs dry.

Escape - perhaps it is locking that hourly wage and turning it into a perpetual resource.

*Is there still time?*

Taraz
[ Gen1: Hive ]


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Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@tarazkp/perpetual-value-machine)