Lost life savings and now in debt. (Investor or speculator?)

When are we investors and when are we speculators?

When we buy into something that has intrinsic value which generates revenue and ideally provides us with an income, we are investors.

When we buy into something that is the complete opposite but we feel that we could sell it for a higher price in future, we are speculators.





People often get into serious trouble when they think they are investors when they are really speculators.

Speculating is not for everyone.

People of more modest means would do better if they stay away from speculating and just stick to investing.










The value of all outstanding cryptocurrencies has fallen by about $600 billion, or 75 percent, since the peak in January.

The damage is likely to be particularly bad in places like South Korea and Japan, where there was minimal cryptocurrency activity before last year, and where ordinary investors with little expertise jumped in with abandon.

Kim Hyon-jeong, a 45-year-old teacher and mother, put in about $90,000 last fall.

She drew on savings, an insurance policy and a $25,000 loan.

She is down about 90 percent.

“I thought my family and I could escape hardship and live more comfortably, but it turned out to be the other way around.”





Twitter is also filled with complaints: “It’s really hard to stomach losing all my hard earned money. Just broke down and cried.”

On Reddit, a user posted a picture of the $100,000 loan that he had taken out in December to buy cryptocurrencies — and that he will now be paying back out of his salary for the next three years.

“I’ve made a mistake, and now I’m going to have to unfortunately pay the cost for the next few years.”

Source: New York Times.






Remember, no one cares more about our money than we do.

Before parting with our money, question if it is an invitation to invest or an invitation to speculate.

Oh, I don't even borrow money to invest with.

Borrow money to speculate with?

That is how some people "ki chia" lor.

Related post:
My final word on Bitcoin and friends.
"When people tell me that they invest in Bitcoin, I get the impression that they are either confused or they are out to confuse other people."