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Yes, you invest money and (ideally/mostly) they produce wares worth more money. Positive sum.
by singularity2001 5y ago
Yes, you invest money and (ideally/mostly) they produce wares worth more money. Positive sum.
- drexlspivey 5y agoThat's not what positive sum means. Both stocks and crypto are positive sum though. Whenever someone buys a stock someone else sells it, one's loss is the other's gain. That would make it zero sum but the company has the option to issue new shares, akin to the fed printing money or a new bitcoin being minted in a block, that makes both games positive sum.
- user-the-name 5y agoThe newly issued shares represent a share in the underlying value of the company, which has increased. For cryptocurrencies, there is no such underlying value.
- Freestyler_3 5y agoA company value is part speculation. If everyone sold their stock would the bottom price be high because of inflated value?
- user-the-name 5y agoCryptocurrency value is entirely speculation.