September 27, 2023

The world's first casino or three thoughts on crypto speculation

Cryptocurrency platform capitalization and,at the same time, the Ripple payment system is $ 343 billion. Ripple is in tenth place in the list by the capitalization of US companies, ahead of Bitcoin (not to mention P&G and others).

How is this possible? It reminds me of one of the American movie classics, the reason why Captain Louis Renault let Humphrey Bogart (Rick) close his cafe in Casablanca.

Difference between investment and gambling

According to Investopedia (encyclopedic dictionaryinvestment and financial terms), investment is "a way of investing money with the expectation of obtaining additional income or profit." Warren Buffett defined investing as

"... the process of investing money in the present in order to get more profit in the future."

Interestingly, you can use the same definitions in cash games. So what's the difference between investing and playing?

I believe the main difference is that the gamemoney involves chance or chance, while investing involves research and analysis. This is what I have been doing all my life. I was an analyst at one of the largest investment banks, Goldman Sachs. The work was hard. But I loved her because I loved doing research.

However, many "investors" figure out what to doinvesting in the stock market, or in crypto, is like going to a casino. They invest in stocks or tokens based on rumors and advice, or what they know and believe in. They do a little analysis (if they do) for each token. Usually, it matters. Take a look at internet investing 1996-1999, if not then look at internet investing in the 2000s.

There are two good reasons why Rippleis one of the richest companies on the planet. First, things are different now. Maybe. But if you read This Time Is Different: Eight Centuries of Financial Folly, you might think this is the second reason. These people are just gambling, not caring or thinking about things like grading.

Cryptocurrency trading has grown into a casino of global importance

For the first time ever, anyone, anywhere,can take money and buy tokens. If they were doing analysis, I would call it investing. But they don't. That's why they gamble. Crypto trading has evolved into the N1 world casino.

And the reality is that there is NOTHING in thisshocking. People love gambling. I have a name for this trend in the market - a soap bubble that bursts and then inflates again. I call this CAPITALISM. This is what has already been (look at the stock market in America in 1927, 1937, 1973, 1987, 1999, 2008). And this is not only in America. When the Japanese land asset bubble peaked in 1989, at $ 1 million per square meter, the Tokyo Imperial Palace was worth more than all California real estate. The Japanese did not invest in real estate, they played on it. The bubble gained momentum for 10 years (1980-1989) until it burst. By that time, this "bearish" market (the situation when the price of a currency pair goes down and other traders intensify this trend by actively selling currency) ended, in 2005 prices dropped by 99% compared to 25 years ago.

In the future, the cryptocurrency market capitalization is now about $ 830 billion. This is approximately 1% of the global stock market, the price of which is more than $ 80 trillion.

Gambling, which is now observed in the cryptocurrency market, in 20 years, when the longest period of growth of other assets has exhausted itself, will be remembered as a golden age.

In an earlier post, I wrote “The Crypto BubbleIsn’t A Bubble It’s A ... "(The" soap bubble "of a crypt is not a bubble, but ..."), I assumed what would happen to cryptocurrency in 20 years. This is the inflation of the bubble, and its possible collapse. If you look at it in the context of mass enrichment with the help of crypt, then it will be just a flash.

Here is a graph of Amar's law (American researcher)

So people are just rejoicing at the incredible future around the corner. I'm excited too. I am still investing in cryptocurrency. I am not trying to determine the timing of the market. I'm just playing a long game. Win with your sim!