Time is money! The fact that a dollar received tomorrow is not equivalent to a dollar in hand today. It is the fact that money always can earn a positive return that lends importance to the time dimension. A dollar given up today is not the equivalent of a dollar received in the future as long as there exists the alternative of earning a positive return on the dollar during the interim.
Is the time value of money only dependent on the affordance of a person or an organization to invest the equivalent amount of money?
This is a very complicated question for me to give an answer to, considering my lack of knowledge in the field. However, I believe other factors have a significant contribution to the time value of money.
For example, in my opinion, as an intersubjective concept, the value of money over time is related to the perceived power it represents for its holders and users. If its power became unpredictable because of high uncertainty, people‘s affordability might have little to do with its value over time.
it is a very interesting topic and I hope to learn lots of concepts and scenarios through it.
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