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> So why are people then trading stocks in China or India or > wherever if they don't trust the system? If you're speculating, i.e. purchasing for the sole p
by braythwayt 11y ago
> So why are people then trading stocks in China or India or
> wherever if they don't trust the system?
If you're speculating, i.e. purchasing for the sole purpose of selling it to someone else, who is also speculating, it doesn't matter whether the system is trustworthy, it only matters whether there is a "greater fool" standing ready to trade with you.
If the perception is there that people are trading in these markets, people will trade in these markets. But without fundamentals, the whole thing can quickly suffer from a collapse in confidence, followed by a "run."
It's no different than buying Bitcoins. Why speculate in bitcoins? Because other people are speculating in bitcoins.
- solotronics 11y agoI have been playing a fun game where I see if a financial article on YC has bitcoin mentioned in the comments. It is in basically every comment section of anything related to finances. Personally I speculate in Bitcoins as a hedge against variations in cash and stocks. I like to think of it as e-gold that has some advantages and disadvantages versus a solid asset like gold. Due to the increasingly global and digital nature of our existence I think BTC has a very high potential upside.