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@lemmy.world
    link
    fedilink
    English
    arrow-up
    6
    arrow-down
    6
    ·
    1 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@lemmy.world
      link
      fedilink
      English
      arrow-up
      7
      arrow-down
      2
      ·
      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@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      ·
      1 year ago

      Stocks pay dividends to their share holders. 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.