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by tboyd47
3134 days ago
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Only certain kinds of investments generate income, and those are profitable businesses that pay dividends. The key to investing in those is to buy them at a low price. Pretty hard for average people to do that these days since we're in a stock price bubble. You can only purchase at a low price if you have better information than the market about what you're investing in. |
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You can make a profit off of the mispricing and misjudgment of others.
Better knowledge exists in many ways, not just insider news/current events. Example: I understand what hashing algorithms are, the difference between Proof of Work and Proof of Stake, therefore I may be better at judging the feasibility of a cryptocurrency and thus better at valuing it.