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comment by katakowsj
katakowsj  ·  3349 days ago  ·  link  ·    ·  parent  ·  post: Why you can't "invest" in bitcoin.

Agreed. It comes down to semantics. What is exactly the difference between speculation and investing? Is is possible to "invest" in something that is purely speculative by nature?

"Speculation" Definition #5 from dictionary.com: 5. engagement in business transactions involving considerable risk but offering the chance of large gains, especially trading in commodities, stocks, etc., in the hope of profit from changes in the market price.





Hell  ·  3348 days ago  ·  link  ·  

Well, this only applies really to institutional investors, but when you invest in a company by purchasing stock you can gain control of that company through votes.

Speculation in gold or bitcoin doesn't do that.

user-inactivated  ·  3349 days ago  ·  link  ·  

Is bitcoin purely speculative? Is gold?

katakowsj  ·  3348 days ago  ·  link  ·  

Seems also to be a matter of circumstance. A person investing all of their assets into solely gold or solely bitcoin seems to be speculating to some degree. The dude with the bitcoin is more likely to lose his shirt, but may very we'll come out ahead, if bitcoin doesn't tank.

Maybe placing a small percentage of assets in bitcoin could be considered an investment?

mk  ·  3348 days ago  ·  link  ·  

Probably more so than the roulette table.

This article is weird. The author seems to miss the point that bitcoin isn't simply a digital currency without any other characteristics. The digital currency BTC is a facet of the bitcoin network. Buying BTC is more like investing in the Euro. A Euro will always be a Euro, but the number of Big Macs that a Euro can buy might increase if the Eurozone is doing well and there is an increase in the demand for Euro's.

user-inactivated  ·  3348 days ago  ·  link  ·  

This was basically my point. Even holding dollars is to some degree "speculative." Holding Swiss francs at the moment certainly is. To differentiate btc, gold, currencies, metals, stocks -- it's shades of grey.