Rooted in Faith: A Philosophical Approach to Finance



Philosopher Soren Kierkegaard proposed a 'leap of faith' as an answer to finding meaning through life, as being overtly rational kept coming up short in providing solutions to the pressing questions that bugged his, and the intellectual societies mind.

While there are criticisms to this solution, there are little doubts about its effectiveness. Faith is an effective solution to fostering hope and providing answers to the most complex of questions. Its relatively simplistic nature enables us to quickly grasp and hang on to it in the face of trials.

This article is supposed to be about personal finance though, and it is. I wonder just how many of the 'smart' financial decisions we have taken have been thoroughly based on rational behavior. Note that risk taking in itself is irrational, and requires some hope or conviction that things will work out.

No one invests in a project expecting it to fail. Rather, there is always some compelling belief in its eventual success even when there are no obvious signs. We have come to call it 'gut instincts', that final nudge that gives us the nerve in any decision about investing.

What we call it doesn't matter though, rather it is what it represents. Having faith in any project we are invested in is quite important not just on a personal level, but I believe at the project level. If everyone carries a fundamental belief for instance, there will be less panic in downturns and a willingness to keep investing during periods of decline.

Of course I have Hive and the entire crypto space in mind when I mention this, even thought its utility I believe extends beyond crypto. There is really no rational basis to invest heavily in a project with a relatively unproven space, no matter how we justify it. Yet here we are as Hivers and crypto investors.

That isn't to say our leap of faith is completely irrational, as there are some strong fundamentals we must take into consideration before deciding to zero in on a project or not. Yet when the chips are down, the only thing that keeps us going remains that unwavering faith that things will eventually bounce back.