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Investment used to mean putting up capital to create or own something that, with some work, would return a stream of income. Farmland produces food with the wor
by njarboe 9y ago
Investment used to mean putting up capital to create or own something that, with some work, would return a stream of income. Farmland produces food with the work of farming. A factory produces goods with lots of people working. A mine produces iron or copper with lots of machines and effort. With the financialization of the economy, lots of people are increasing their "wealth" by speculation and skimming a percentage on transactions. When people start believing that speculation is the only form of investing, society is in for a hard fall at some point.
- mrb 9y agoBy your definition, this still leaves FX trading as a "pyramid scheme". Trading fiat for fiat doesn't "put up capital to create something".
- matthewmarkus 9y agoIn FX trading people are putting up capital to create exchange ratios, which is information. Right now people are putting up capital to determine how much coin issued by a central bank with a "deflationary" bias written in code and run and administered by a collective (i.e., Bitcoin) is worth vis-à-vis USD. Something is most definitely being created.
- mrb 9y agoYou seem to be arguing that trading fiat↔fiat is comparable to trading fiat↔BTC. In which case I agree. That's the point I was making.