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.
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.
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.
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 to cost of the asset. Crypto generates 0 profit, so it has 0 value as a capital investment.