We live in an age where some age-old sayings are starting to lose relevance. Remember when your teachers told you that you won’t always have a calculator with you? Or parents telling you that you can’t make money out of thin air? Well, now have phones which can do rather complex mathematical equations for us within a mere few presses of a touchscreen, proving your teachers a bit wrong.
As for the “money out of thin air” part, that has also become somewhat possible. Of course, much like anything else which sounds too good to be true, it’s not very simple, but it is a theoretical possibility. If you’re still not following, then let’s get started talking about the two main ways in which you could be investing money into money itself.
“Playing the market”
We’ve surely all come across the phrase “playing the market” at some point in our lives. Whether it was your business-literate friend who just couldn’t stop going on about it and how great it is, or maybe it was in an article such as this one somewhere online, you’ve probably heard it both getting high praise and cynical belittling. While it may be hard to be objective on the matter because much like anything, people’s opinions on things are based off their experiences, but let’s try and look at it in the most unbiased way possible.
Whether it’s dollars, British pounds, or even company stocks, you can freely find information about the performance of the subject at hand. Currency price history and current worth is not very difficult to find, and things like VHT price history is freely available to look up just as well.
So, after doing some minor research and carefully observing the trends of whatever you might want to “buy in” to, the question of “should you do it?” remains on everyone’s minds. Well, like anywhere in life, a profit is not exactly guaranteed, but it’s definitely a more wise alternative to gambling. Is playing the market gambling in itself? Hard to say, but the principle doesn’t seem all that different, it’s just this time it has a track record of actually being somewhat successful at times, rather than being designed to steal your money from you.
The new craze of cryptocurrency
You knew it was coming, because just about everyone and their dog can’t get enough of this topic nowadays apparently. The humble beginnings of cryptocurrency can be traced back to almost a decade ago, starting with Bitcoin in 2009.
While originally being used as a digital currency which allowed for a high level of anonymity during transactions, it has now become the new and hip stock market. Is it more volatile than the previously established stock market that we’ve all come to know and love (possibly hate)? Of course, it is. It’s not like anyone is checking if their dollars of pounds are worth next to nothing each morning, but with crypto that’s not too far from being possible.
That said, with great volatility, comes great potential. Volatile does not only mean going down, if anything, the unstable nature of cryptocurrencies is what brought about the huge interest in them in the first place. People bought into a plethora of other cryptocurrencies, or “altcoins”, the moment they saw Bitcoin blow up in a way that nobody could have predicted. Once again, “Should you do it?”. “Isn’t this just gambling?”.
Well, the answers to those questions respectively remain “If you’re feeling up for it”, and “Yes a little bit, but it has seemingly not stopped many people”. While dedicating your life savings to a “go hard or go home” scenario might not be the smartest thing to do, if you have some spare cash lying around which you wouldn’t mind doing something with, there would be more than enough people telling you to try and get a piece of the crypto cake.