Lessons From Bitcoin, Tulip Mania & The Nigerian Stock Market


 

Everyone wants more money: beggars, students, thieves, workers, billionaires—everyone. Money determines the choices available to you, the places you can live and the things you can or cannot do. So humans are always trying to get more money, more resources. Economists call it the law of unlimited wants. Humans always want more and our want is insatiable.

To get more money, we do a variety of things: we work, we steal, we beg. But more honourably, and sometimes more successfully, we invest. Investments have the ability to change people’s financial futures and lift them out of poverty. Businesses providing goods and services have done this for the longest time, but the paradigm has shifted to show that that the most important investments are those that require your time or supervision, the ones where your money works for you.

Enter real estate, commodities, the stock market, forex trading and most recently, cryptocurrencies. These investment avenues offer a return that does not depend on your time or effort, but invest in the right one at the right time and you will be rich—or at least richer—than you would have been without the investment. Great idea, except when such investments fail: when the real estate market crashes, when the forex trade does not yield, when the price of a commodity (e.g. crude oil) plummets, and when a cryptocurrency’s value crashes.


Read the full article on Global Voices, here

https://globalvoices.org/2018/03/09/what-bitcoin-tulip-mania-and-the-nigerian-stock-market-have-in-common/

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