Quote from: goodvibes05 on July 09, 2018, 07:41:48 AM

First, lack of knowledge in cryptocurrency that's why they don't gain interest on investing in crypto. Second, even if they want to they are just too afraid of getting scam and being fooled by abusive people.

What I can see on this board, there is discussion about why people do invest in cryptocurrency or not. But what I see is that some of you don't see what you are discussing here. Let us go to fundamentals and clarify what does it mean "invest".

Some of you maybe refer to invest as "buying". So let us say you buy a car, you can say this is investment. But you are using your car, of course it is investment but not in the definition of investing for profit.

Some will buy a car as trader to resell it, then such car has investment meaning as how I understand it. Some people will invest into their knowledge and will buy books, educational media or similar, but that is not investment context I am referring now.

If we speak of general investment we shall put profit there as a goal. So people do invest all over the world with profits in mind.

So where are majority of investments? In businesses. People invest into creation of new services, new products, manufacturing, production, people invest into something that is valuable for other people. You can see shops anywhere, people on street providing services, selling fruits, anything is there, just observe around you and you will see the majority of investments and where they go. It is all visible and in front of each of us, easy to observe.

Now we come to the question why people don't invest into cryptocurrency?

It is very similar question like why so many people don't go into gambling house and enjoy there while maybe loosing or winning money?

So the question itself is question of percentage of people who like and know what is speculation. Speculation is not investment into business.

speculation -- from Wordnet dictionary

The noun speculation has 4 senses (first 3 from tagged texts)
1. (2) guess, conjecture, supposition, surmise, surmisal, speculation, hypothesis -- (a message expressing an opinion based on incomplete evidence)
2. (2) speculation, conjecture -- (a hypothesis that has been formed by speculating or conjecturing (usually with little hard evidence); "speculations about the outcome of the election"; "he dismissed it as mere conjecture")
3. (1) speculation, venture -- (an investment that is very risky but could yield great profits; "he knew the stock was a speculation when he bought it")
4. meditation, speculation -- (continuous and profound contemplation or musing on a subject or series of subjects of a deep or abstruse nature; "the habit of meditation is the basis for all real knowledge")

So maybe the definition number 3. fits into pure investment into Bitcoin or other cryptocurrency, because it is purchase of currency with some hopes that price is going to change in future, and that there will be win while selling such currency.

It should be obvious that such speculation has no longevity, as you simply cannot repeat that as many times as you wish. Maybe you are lucky, maybe not. But there is absolutely no control unless you are some bigger player. It is not for majority of people.

Investment into any currency with purpose to sell it later for some profit is pure speculation, and not investment in terms of providing services, products, production or similar.

So there is nothing behind any currency that is giving exchange to other people. There is no hair dresser service, no bread, no car, no motorcycle, there is nothing worth really for other people if anybody buys currency.

I am purchasing Bitcoin for US $5,000. Alright. How did I help anybody in the world? I have not.

Do I have any control over purchasing Bitcoin, like do I know at which date can I sell Bitcoin to earn like US $100? I have no control. But maybe I have luck. Or bad luck.

By simple purchasing Bitcoin do I support anybody to provide any service or to manufacture any product or to provide any kind of tradae? No.

So purchase of any currency alone, with purpose to profit is for me similar to gambling.

One of best stock traders from France worked with me in past, and I have brought some clients to them. Newspaper articles were all over, Internet was speaking of him. He was offering 1-2% per month to investors. After one year or something, he could not work anymore, business was not as easy, and his company failed.

In general, when choosing where to invest, choose those activities where you can get insight, control, timeline, times, dates, where you can understand how that activity is providing a service to other people, how activity is valuable to other people, wanted, demanded, which products are given at what time to other people, that way you can choose better investment activity.

Bitcoin is excellent way of making payments. It is bad to store any values inside for future. Not at this moment.

goldivanti

Posts

Merits