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Is there not an entire currency speculation market? [0] > When speculative investing involves the purchase of a foreign currency, it is known as currency specu
by WaitWaitWha 4y ago
Is there not an entire currency speculation market? [0]
> When speculative investing involves the purchase of a foreign currency, it is known as currency speculation. In this scenario, an investor buys a currency in an effort to later sell that currency at an appreciated rate, as opposed to an investor who buys a currency in order to pay for an import or to finance a foreign investment.
[0] https://www.investopedia.com/terms/s/speculation.asp https://www.investopedia.com/terms/s/speculation.asp
- spicymaki 4y agoSure, I get the idea of currency speculation. You can speculate on anything including currency. The problem is when you try to make currency out of a speculative asset. In this case of bitcoin the value is highly volatile, so you would not want to use it as a national currency. I do know that bitcoin was originally envisioned as a currency, but most people are using it as an investment. You also have not addressed the issues I presented.
- 2muchcoffeeman 4y agoI don't think it's reasonable to think about it in such a simplistic way. BTC has been subject to massive swings. Just looking at CoinDesk, it was easy to find a time where it doubled in value in less than a month. Why would any reasonable person spend that sort asset? I think the dynamics of the market are as important as the technical features that some digital currency has.
- hnthrow1010 4y agoBut for the average crypto investor who isn't a whale and isn't insider trading on the whales, the dynamics of the market are effectively just random. This isn't like a stock where you can objectively look at the company, compare it to other companies and understand how it derives profit. It can't work either as a currency or as a reliable investment.