No
No it’s not. Just because there’s variance in both doesn’t make them the same.
Investing is attempting to get the highest rate of return over a specified timeframe, with the lowest volatility.
Gambling is not about lowering volatility or getting results over a timeframe. It’s speculation and entertainment.
This is like people who claim insurance is gambling. No it’s not. It’s risk transfer.
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So speculative investments are not investments? If that’s the case, then I guess it doesn’t matter what you call it.
People don’t buy Tesla because of its PE ratio.
Arguing semantics, is that the plan here? To get around the fact that everyone here, including you knows the difference between investing and gamblin?
I personally think they’re one and the same in the CURRENT meta.
If you want to call crypto gambling that’s fine, but that’s more of a semantics game because it’s part of many companies’ investment portfolio.
Instantly, ime.
Unless they can fly their doghouse like a Sopwith Camel.
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Crypto isn’t gambling. They are new alternative currencies competing for the best product.
They are very risky for various reasons, like fraud could make them worthless, among other things. But fraud can also make companies like Enron go to zero, and picking a loser like PALM 20 years ago was the wrong choice.
So this isn’t gambling because…?
Crypto is just saying “climate change? ha, let me just light the climate on fire.”
Gambling has a stated probability of future outcome, with high returns at very low probabilities.
Purchasing crypto is speculation, at best.
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so…crypto is worse than gambling?
Using their definition (which is a good one) sure says it’s speculation, which is neither gambling nor investing. Worse? that’s up to you.
Only when you lose
Okay, then I have a good distinction between speculation and gambling.
But I don’t think I have a clear distinction between investing and speculation.
Given at timeframe, trying to achieve the highest return while minimizing risk.
I feel like this is the definition that was given to us in actsci class. Seriously.
So is buying stocks speculation or investing?
But that definition could easily be applied to sports betting. So Sports betting is investing and not gambling?
And just an FYI - #2 definition of gambling from the Oxford English Dictionary (at least the collaboration with Google) is
take risky action in the hope of a desired result.
Could be either, or both.
I define “speculating” as “you could lose it all.”
I define “investing” as “you could lose some of it.”
So, naturally some stocks, and crypto, and special dog breeds (/s), might fall in either of these categories.
Heck, leveraging a house purchase for flipping is “speculating,” while buying the same house with a mortgage to own and live in is “investing.”
Not interchangeable, but specific to the investment and purpose.
Not sure I like this definition. I feel like it doesn’t align with my intuitive sense of what the differentiation is.
I think investing means you’re personally interested in the value of the company or the product. This would also make buying a house an investment for sure, as you have a personal interest in its intrinsic value.
Speculating is just looking at numbers. eg. I don’t actually know how much Tesla makes and I know next to nothing about their products and innovations nor do I care, but it seems like its stock price is doubling each year, so I’m going to buy it.
There’s going to be an overlap for sure with my definition.