Acharya Prashant explains that the term 'self-esteem' implies estimation, which is essentially a guess made in the absence of true knowledge. He contrasts self-estimation with self-realization, noting that one who truly knows themselves does not need to estimate. Most people live in a state of confusion, juggling multiple false identities—such as being a son in one moment and a friend in another—without knowing their true essence. This lack of self-knowledge leads to a life filled with doubt, hesitation, and a constant need for external pressure or validation to perform even basic duties.