Comment on Opinion | Don’t Get Fooled Again by Crypto
limerod@reddthat.com 5 weeks agoDo you know anything about financial markets?
I’m at a beginner level in Investments and stock market.
Study and you’ll understand everything you could do with it.
I’m already learning about Investments and stock market. Maybe, once I finish that I could consider this. But, I don’t see much value in crypto so won’t bother.
Perhaps, if my perception changes in the future I could reconsider. Just not in the near future.
freedomsailor@programming.dev 5 weeks ago
But crypto is just like the stocks: you can buy it because you believe on the project or just because it’s what’s delivering the best results at the moment. Consider cryptocurrencies as a little portion of your portfolio, intended for risk. You can operate it via ETFs, and thus don’t expose yourself to the risks (and benefits) of the blockchains.
BakerBagel@midwest.social 5 weeks ago
A stock is based on the profits and production of real companies that offer real goods and services. Crypto is based entirely on hype and sunk cost fallacies.
locuester@lemmy.zip 5 weeks ago
This is simply not true. I’ve been a fulltime software dev in the crypto space for 3 years. Moved to crypto after 25 years in the financial sector. My work in the crypto space is a near parallel to the legacy financial sector wrt products and services I’m delivering.
Sure crypto has a scammer and hype and meme angle but I operate in none of those.
Think of NASDAQ without all the rules. Where anyone can list and trade anything, even complex financial derivatives. It’s so freeing for the little guy. It levels the playing field of the financial system and access to capital quite a bit.
sonori@beehaw.org 5 weeks ago
You realize that the things listed on the NASDAQ actually represent more than just an entery in a database, right? Like the groups listed on there tend to make physical objects and software that does things beyond move things that can be traded for currency around?
You also realize that the NASDAQ, without all the protections and basic rules the public forced it to adopt after vast numbers of little guys got screwed out of all their money, isn’t actually that great of a pitch? At least not to anyone but the far right uber rich libertarians that hold majority control of the crypto space.
We are talking about a technology that is about as old as smartphones, but which has still yet to see any widespread use to solve a problem it did not itself create.
jarfil@beehaw.org 5 weeks ago
No it’s not.
Stocks are based on the “valuation” people give them, for whatever reason they want. Check Gazprom’s recent stock valuation for a reality check; it doesn’t matter what “real goods or services” it keeps providing, everyone who held Gazprom stock, got exactly $0 for it. For further information, check how much company shares are worth.
(Spoiler: they’re ALL based on “hype and sunken cost”)
azthec@feddit.nl 5 weeks ago
Cryptocurrencies are not like stocks, stock is partial ownership of an enterprise which has the ultimate goal of generating more revenue, stocks are not a trading currency.
sonori@beehaw.org 5 weeks ago
Most people when starting out are, or at least should be, very uneasy about putting money into things with no underlying value or feasible purpose beyond being bought by a greater fool in the future.
maxprime@lemmy.ml 5 weeks ago
What about cash?
sonori@beehaw.org 5 weeks ago
I’ve rarely heard it suggested as an investment, but it can actually be realisticly used to goods and services outside of itself and as such does have an actual purpose, which is more than can be said for any crypto currency.
BakerBagel@midwest.social 5 weeks ago
I can use cash to pay my taxes. I cant pay my taxes with cryptocurrency.