Investing vs. Speculation - The “Spectrum” Mindset
For the past few days, we have been presenting the argument that investment and speculation exist on a spectrum. We supported this idea by drawing parallels to simple concepts from everyday life, such as: day and night, tailgating and speed limits. Additionally, we also emphasized the importance of self-discipline and urged individuals to establish their own speed limits in finance, because nobody else will do it for them.
Today, we will bring all these ideas together and provide you with a powerful image. In fact, we’re going to take a slightly different approach today. We will share this image with you and provide our detailed commentary in our next post. Before you proceed to our next post, we encourage you to examine this image, ponder its meaning and reflect upon it. Our intention is for the image to be self-explanatory; we believe the most effective images convey the main idea without the need for a written commentary. However, we need your cooperation to determine whether we have succeeded in this regard.
With each passing day, it becomes increasingly unrealistic to expect that Congress or the SEC will take the necessary steps we believe should be taken when it comes to investor protection. Crypto advocates hailed yesterday’s landmark decision in SEC v. Ripple as a triumph for justice, a defeat for Gensler, and overall a victory for free choice. However, it is none of those things. In reality, it represents another setback for investor protection and for the American public as a whole. It will take time for us to effectively communicate this message to the masses, but we have set our target date: 2027.
And now, we present our image:
Now, you might wonder, "Okay, it's a visually appealing image, but what's the point? How does it benefit me? Why should I invest my time in contemplating your image? I might as well go and buy some cryptocurrency, especially considering yesterday's decision in SEC v. Ripple.”
Precisely because of these questions, it is crucial that you spend a little time with this image. It serves as a fundamental building block toward understanding the concept of investing and what it truly means. Once you grasp the essence of investing, you will also comprehend what falls outside its scope. In particular, you will realize that crypto does not qualify as an investment, until and unless it is one that generates cash flows (staking is a completely separate contract), and even that we would need to assess whether it is “cheap” enough. Crypto may or may not be an investment contract according to yesterday’s opinion; we will elaborate on that important matter in our sister blog, Full Court Press. For now, let us simply state the following:
When it comes to money, you are the one who is ultimately responsible
for your own financial well-being.
