101–110 of 317 posts
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Because...?
Because it is based on supply and demand, it's just more volatile than what you're used to. Doesn't make it luck
> Invest in Bitcoin & other cryptocurrencies > Cryptocurrencies, stocks, ETFs, and options are now available side by side — all easily accessible in one app. Managing your investments just got even easier. There is a dangerous theme of companies aimed at millennials that misappropriate Bitcoin (etc) as an investment, when it is just glorified currency exchange speculation. Blurring these lines obscures the real-world…
I buy bitcoin, it changes in value, I cash out, I now have a different amount of money than I put in. How is that not an investment?
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A better question might be: How is anything an investment? If the stock market is priced efficiently, it is as much a gamble as Bitcoin. The stock market is of course not perfectly efficient, but it is likely extremely efficient relative to the knowledge of your average retail investor. Which means that buying Bitcoin or other cryptos is no more a gamble than any stock market investment with a similar volatility.
What separates investing from gambling is the expected return for everyone is greater than zero. AKA buy stock at 100$ and sell it at 100$ does not mean you broke even. You could have gotten 10$ in dividends. Now that positive may be small and some people may lose money, but that's allowed as long as the expected returns end up positive. Bitcoin's can't have a net positive return because they only way to add money in…
I'm not disagreeing with you. In fact I almost agree with you, but your argument fails for most stocks.
I'm disappointed in Robinhood. They've done great work making equity investment approachable to people who are traditionally alienated by it. Their mission, "[...] to democratize the American financial system." caries fantastic social value and generates a lot of good will for them. Entering cryptocurrencies IMO runs counter to that mission. It's a cash grab which will expose their users to poorly-understood risks an…
That's already the case. Their entire user-base is comprised of naive stock market investors. If they really wanted to bring about a more stable financial footing for their users they would just offer dressed-up ETFs.
I'm disappointed in Robinhood. They've done great work making equity investment approachable to people who are traditionally alienated by it. Their mission, "[...] to democratize the American financial system." caries fantastic social value and generates a lot of good will for them. Entering cryptocurrencies IMO runs counter to that mission. It's a cash grab which will expose their users to poorly-understood risks an…
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I also think the stock market is not "investing" but think it's safer to invest. 1. There's more government regulation and less manipulation. 2. New money is constantly flowing in, via 401K's and pensions. Most people aren't even aware they're invested in the stock market. 3. The government cares so much about the stock market doing good. Look at how Trump brags about the booming market. If it goes in a funk, the gov…
> less manipulation > If it goes in a funk, the government will think of ways to prop it back up I don't disagree with the second statement. I guess what you're saying is that there is manipulation (talking about government intervention in this case) but overwhelmingly in the "right" direction?
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I buy bitcoin, it changes in value, I cash out, I now have a different amount of money than I put in. How is that not an investment?
I think when he said " real-world value created through actual investments " - the underlying idea behind an investment is that you provide capital to someone who is trying to build a business that will hypothetically provide jobs and value to society. Putting money into something and taking more money out is a bastardization of the term in that interpretation. That is simply not the case here - this has simply been…
The stock market is a secondary market with people trading stocks, not providing capital.
Earlier quoted context omitted.
A better question might be: How is anything an investment? If the stock market is priced efficiently, it is as much a gamble as Bitcoin. The stock market is of course not perfectly efficient, but it is likely extremely efficient relative to the knowledge of your average retail investor. Which means that buying Bitcoin or other cryptos is no more a gamble than any stock market investment with a similar volatility.
What separates investing from gambling is the expected return for everyone is greater than zero. AKA buy stock at 100$ and sell it at 100$ does not mean you broke even. You could have gotten 10$ in dividends. Now that positive may be small and some people may lose money, but that's allowed as long as the expected returns end up positive. Bitcoin's can't have a net positive return because they only way to add money in…
Earlier quoted context omitted.
I buy bitcoin, it changes in value, I cash out, I now have a different amount of money than I put in. How is that not an investment?
I put money down on a blackjack table, play a hand, win, and cash out with more money than I put in. How is that not an investment?