I am so happy about this. I hope this is going to sour crypto for "investors". I use quotes, because they really are not -- investing should be reserved for fronting cash to create some value (like buying stock to infuse capital into a corporation). As it is all crypto trading is purely speculation. The world would be so much better if money tended to be exchanged in good faith, to improve something rather than just…
Ok but let's be real- buying a stock is not really "creating value". The stock already exists. Company A has issued 100 shares. People are buying/selling it in the market.. no one is creating value there. Sure they may be arbitrarily driving the value up, but that's not creating real value.
If you want to argue that an IPO is "creating value" because people basically front the money to give capital.. ok fine. But let's not pretend you as a random person buying and selling google shares that already exist is creating value.
Also, I would say the people sitting here buying and selling stocks are most of the time 99% pure speculation. They have zero control over what actually happens in the company. Sure they can do "research" and guess what might happen.. but it's still nearly all gambling.
Investing is the horrible word for how nearly the entire financial system works. People have created gambling as a way of life, and convinced everyone else that they must gamble their money to make more. Which, surprise surprise, nearly always benefits the rich. Guaranteed pension/good social security? Nah, throw your money into our 401k so we can prop up the rest of the market arbitrarily and continue to drive up everything the rich own so they are richer! And you've all fallen for it.