Exploring the Paradox: Why Crypto is a Good Bet but Not an Investment
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Chapter 1: Understanding the Distinction
It's an intriguing concept: how can cryptocurrency be considered a favorable gamble yet not qualify as a true investment? Let's delve deeper into this.
Investing is defined as "the acquisition of assets intending to generate a return based on the enhanced productivity that the investment fosters."
But where does productivity fit into cryptocurrency? Is there a workforce involved? Has the asset's value increased? Is there greater efficiency or benefits from scale? What measurable productivity exists? If the mere ability to generate returns classifies something as an investment, then one could argue that gambling falls into the same category, which most would contest.
Acquiring shares in a company or real estate inherently promotes productivity, thereby justifying the investor's expectation of returns. This is a reasonable and ethically sound rationale.
So, where does productivity appear in the realm of cryptocurrency?
It’s likely that Satoshi, the creator of Bitcoin, is astonished at how today's speculators are inflating the value of his creation.
The driving force behind the rising prices of cryptocurrencies is primarily the mining process and the limited computational resources needed to add blocks to the blockchain.
But is that truly productive? The answer is no—cryptocurrency aligns more closely with gambling.
By its very nature, investing in cryptocurrencies resembles gambling, yet it remains largely unregulated and can be more predictable than a game of chance.
Therefore, when friends inquire about my willingness to invest in Bitcoin, I clarify that to me, cryptocurrency investment doesn’t equate to genuine investment. It’s more like gambling, and I prefer not to engage in that. For me, an investment should yield more than just profit; it should contribute positively to society.
Some might argue that investing in businesses carries elements of gambling too, and while it does involve risk, constructive investments help enhance the productivity of valuable enterprises. Ethically, one can rightfully expect to benefit from a company's growth due to their support, which is a commendable pursuit.
Section 1.1: Not Anti-Crypto, Just Realistic
Does this perspective imply that I am against cryptocurrency? Absolutely not. Upon first reading Satoshi's whitepaper, I was captivated by Bitcoin's innovative components and its sophisticated cryptographic design, which promised a future where all individuals could utilize a single universal trade medium.
Imagine a world where even the most remote communities could trade with major financial hubs, free from the constraints of political influences and the pitfalls associated with traditional fiat currencies, as well as the fees imposed by intermediaries like banks.
Angela Clark and I are striving towards this vision with our project, Wallet Nation.
Our aim is to develop a cryptocurrency with minimal transaction fees—less than a cent—high throughput, and the ability to facilitate diverse transactions, from a simple coffee to purchasing a house.
Given our shared values of fairness and justice, we aspire to see this model gain traction globally.
Consider El Salvador, which has boldly adopted Bitcoin as its national currency. This move could theoretically counteract rampant inflation, yet the practical implications reveal a troubling reality: each transaction incurs a minimum mining fee of $5 USD. For an economy where a bus driver earns $40 weekly, receiving a paycheck could cost a staggering 13%, not to mention the fees associated with everyday purchases like coffee or bread.
It’s essential that someone fulfills the promise of Satoshi's original vision. We invite you to wish us luck!
Angela and I are currently developing a universal escrow service that eliminates the need for intermediaries in all forms of cryptocurrency. Once we achieve this, we will set our sights on the next milestone: digital fiat.
If you're interested in being part of this journey as early adopters, beta testers, or core community members, follow us at Wallet Nation on LinkedIn. We welcome connections with like-minded individuals.
Join the Coinmonks Telegram Channel and YouTube Channel to learn more about crypto trading and investment.
Also, explore our reviews on various cryptocurrency platforms and services.
Chapter 2: The Future of Crypto
In this video titled "Stocks vs Crypto - Which Should You Invest In?", the discussion focuses on the comparative merits of investing in stocks versus cryptocurrencies, offering valuable insights into the decision-making process for potential investors.
In the video "Why I Don't Invest in Cryptocurrencies," the speaker elaborates on personal views regarding cryptocurrency investments, highlighting concerns and alternative perspectives on the crypto market.