As the AI market continues to balloon, experts are warning that its VC-driven rise is eerily similar to that of the dot com bubble.

  • higgs
    link
    English
    01 year ago

    So what’s the difference to money, stocks or every other investing option? There’s has to be someone who loses so someone different can win. We’re living in a capitalistic system, that’s how it works.

    • @bigschnitz
      link
      English
      6
      edit-2
      1 year ago

      Money isn’t an investment, it’s a currency. Of course it’s a bad investment and investing in forex is barely a better investment than crypto (purely because there’s less risk of a sovereign currency devaluing to 0).

      Investing in capital, like stocks, property, equipment etc does not require someone to lose money for the capital owner to profit. If I invest in a stock, each year I’m paid a dividend based on the profits of that organisation - no losers required. I could later sell that stock at the exact price I paid for it and come away with profit from those dividends. What determines whether it’s a good or bad investment, is the ratio of profit to the capital owner compared to cost of the asset. Crypto generates 0 profit, so it has 0 value as a capital investment.

      • @aesthelete
        link
        English
        2
        edit-2
        1 year ago

        Every crypto trader that is clueless about actual investing thinks that dividends don’t exist.

    • @aesthelete
      link
      English
      2
      edit-2
      1 year ago

      Stocks pay dividends to their shareholders. Stocks also represent portions of companies that make other things.

      Basically you’re saying that crypto is like a shitty stock that doesn’t pay dividends, doesn’t generate a profit, makes nothing, is not actually valuable, and is only worth what you can sucker someone else into paying for it. I agree.

      But I also wouldn’t “invest” in such a stock.