• sodium_nitride [she/her, any]@hexbear.net
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    9 days ago

    It’s not a “more suspect investment” as much as it is not an investment at all (in the marxist sense). Unless you are a crypto miner, you aren’t a firm employing labor to produce crypto or process crypto transactions. You are literally the customer for crypto.

    “Investing” in crypto currency by buying it is like “investing” in USD by buying USD paper bills, or “investing” in bread by buying bread at the supermarket. All in the hopes that you can then resell what you purchased at a higher price to someone else.

    The only rational (in the mathematical sense) reason for anyone to buy currency of any type is to

    1. Keep liquidity for expected expenses in the future
    2. Purchase useful things that can only be purchased in that currency

    However, a theoretically irrational action can be beneficial if you luck out. And the media tends to elevate the stories of irrational traders who lucked out, encouraging other people to behave irrationally.