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by bluGill
1581 days ago
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There are different types of speculative investments. Stocks are backed by the company they are behind, when the company goes out of business the stocks stop trading. When you own stocks you vote on company leadership (or at least should). When the company makes money they pay you cash as a dividend (for tax reasons this most often comes in the form of a stock buy back making your stock more valuable. As such stock speculation on the company not stocks in general. Historically money was backed by gold, and supply and demand of gold is what governed the price. Today cash is not, and it is only backed by the government saying you have to use it. As such cash is more speculative than stocks, but the government forcing you to use it means it has some power behind it. Bitcoin is backed by some governments, so bitcoin is speculation on those governments (this is new in the past few years and makes bitcoin somewhat less speculative than other crypto) I don't see the point of crypto in the end. Almost everything it can do is better done by a secure central database, and the rest is a niche that can be handled by physical cash, or a contract (ie check) that is reconciled with the database later. Sure you could use cyrpto, but the energy costs are so much larger that I don't think we as a society can afford to use it. |
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Often?
"Nearly 75% of the stocks in the S&P 500 pay a dividend, and the dividend for most of them exceeds the yield on U.S. 10-year Treasury bonds (currently around 2%)"[0]
[0] https://cabotwealth.com/daily/dividend-stocks/highest-paying...