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I suppose it depends on how you use the underlying instrument. Some people use currencies or their derivatives as investments, particularly forex traders. Som
by notch656a 4y ago
I suppose it depends on how you use the underlying instrument.
Some people use currencies or their derivatives as investments, particularly forex traders.
Some may use crypto essentially as a currency. The 'marketing' isn't unified and depends on who you listen to. For instance, the bitcoin whitepaper itself doesn't promise real returns on 'investment.'
>On the other hand crypto is marketed as an investment that you are to hold for long periods of time
I'm with you that this is probably not a good viewpoint to take, but I don't think that's the only viewpoint out there on how to use crypto.
- arcticbull 4y agoIn Forex trading, you're short-selling one currency and buying another. It's not an investment, it's a pair trade. Nobody buys USD or NZD or any other currency expecting to walk away with more value in the currency itself. You're making money on the divergence or convergence in purchasing power of a currency in one country vs. another. Your goal is to walk away with more units of your currency than you had to start, not that each of those units will be worth more.
- notch656a 4y ago>you're short-selling one currency and buying another >It's not an investment, it's a pair trade. So borrowing USD and selling it to buy BTC means you're not investing in BTC?
- arcticbull 4y agoHm, that's fair. I guess I could say you're not investing in the currency but rather in the convergence or divergence of their relative purchasing power in their domestic economies. I'm not trying to be nit picky, I'm open to being wrong here.