Quote from: jackg on May 19, 2021, 05:06:51 AM

Quote from: fulcare on May 19, 2021, 04:58:20 AM

Quote from: jackg on May 17, 2021, 03:22:39 PM

Quote from: fulcare on May 16, 2021, 07:43:31 AM

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Quote from: cryptoboss2020 on May 09, 2021, 08:45:50 PM

Why people still buy stocks?
If with crypto much bigger profits *
3% daily gain is nothing If you can get 100% profit with Good coins pump.
How the Hell people Even get rich with stocks with so small profits?

Classic example of someone who doesn’t understand how stocks work or frankly investing at large. Stocks represent a legal share of the ownership of a business. That’s why they have value, you’re literally an owner of the profits the company produces. Crypto is just driven by a bunch of people who are speculating that the price of crypto will go up. There’s no real reason in goes up other than mass agreement, and because that’s arbitrary there’s also no reason it can’t go down for the same reason. Expecting to make profit trading crypto in pumps is nothing more than buying a lottery ticket, and that’s the opposite of investing.

While it is tough to refute your argument logically, I would say buying Bitcoin is like buying a lottery ticket goes several steps too far. Once Bitcoin progresses technologically, the network gets monetized inherently through the frictions it solves that alternative systems inevitably bring about. Facebook is monetized through it advertisement, but when Facebook started out it didn't earn any money yet I wouldn't deem an investment a lottery ticket. There was quality talent and a vision involved, but sure the monetization mechanism is more obvious. Bitcoin internalizes externalities that, for example banks impose upon us. Does that make sense? Happy to have your feedback here.

If you own crypto, you own a proportion of the total supply of the currency. Everyone's heard of bitcoin and Cryptocurrency and many have also heard of ethereum. Since both are open sourced, you're paying for their security and immutibility solutions as well as additions that could be added to the coin. People with large stakes in a coin can adopt new technologies into the coin and, if they don't, the ecosystem is decentralised enough thst another chain should be able to take on that task and have people/companies move towards it and use it as they would bitcoin (eg the dominance of bitcoin has dropped below 50% now).

It's like saying the grocery store isn't worth anything because all of their produce comes from a farmer. An investment in a coin is an investment in its community and its devs. This is the whole reason why coins pump and why bitcoin can make 500% in a year but some random new idea coin can make 6000% in 3 months (once it's proved itself and its security).

Even though you described a different aspect of valuation than I did, it's also true what you just said. I stand by my words that buying a lottery ticket is different from buying a well established cryptocurrency. Bitcoin is an exit option to an existing financial system. A lottery ticket is not (neccssarily, it could be though Tongue

).

I was arguing in your favour but thought it was a different perspective most people seem to ignore (the same people who think an investment in crypto is gambling).

You could literally turn everything into a gamble if you wanted to. To me gambling is about individual mindset than a specific action alone. If you are a real estate guru and short the market because you think you know what you are doing, you are actually not a gambler to me whereas if the average Joe goes short with leverage because he read the headline in a newspaper that real estate is about to face a decline in value, that might very well be gambling.
It is the same with crypto. I think the generalization "crypto" is kind of wrong. I can invest in solid Bitcoin, Ethereum or Monero or I can put money into bs coin hoping it pumps. Both is putting money into crypto while one might an investment and in the other a gamble.