Why is Crypto a scam but the Stock Market a golden ticket?

Of course crypto is in the shit right now. Probably fairly predictable given the world’s issues and whether it’s a bunch of macro factors or the whales manipulating markets I do see there’s major problems.

But…

Why isn’t the stock market receiving the same attacks and criticism? There’s literal proof of manipulation, the SEC putting propaganda hit pieces out, ‘blue chip’ companies down more than 50% yet the media and most users on here think that’s all fine?

Maybe I should have posted in ‘no stupid questions’…?

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25 thoughts on “Why is Crypto a scam but the Stock Market a golden ticket?”

  1. Whatever you believe about the stock market; manipulation in the crypto market is much, much worse and the accountability of the project owners pretty much non-existent.

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  2. Companies make profits, wide diversification is possible and reasonable, particularly through ETFs, long history of performance, etc.

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  3. Companies on the stock market have property, ip, profits, etc. These are what ‘fundamentals’ actually are. The SEC continues to regulate the stock market.

    As where crypto is an unregulated free-for-all ponzi scheme in which people refer to wild claims in PR ‘white sheets’ as “fundamentals”. There is virtually no policing of scams in crypto spaces.

    Edit to add: I appreciate everyone’s interesting and varied responses. I did not want to upset anyone. I hope you all profit massively in all your endeavors. I was just giving my answer to the OP question. It was based on perception, which is the type of question they were asking – not my personal beliefs – which is that everything is basically whacked these days.

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  4. Stocks represent a piece of ownership in a company. Those companies generate goods and services that people pay money for and they often hold considerable assets in real estate, equipment, cash, patents, etc.

    Cryptocurrencies do not generate excess value – the increase in price is only due to speculation. Furthermore one person’s gain in crypto is another’s loss – it is a zero sum game.

    A better comparison would be comparing crypto to USD or gold.

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  5. Are you fucking serious?

    You’re comparing companies with actual employees who devote years of labor to produce tangible, physical products that customers buy and use every day to a bunch of digital coins that literally do nothing but tell you how many of them you have?

    There’s a ton of innovation that can **potentially** be done with crypto, at least among smart contract cryptos. But it hasn’t manifested yet. Thus far, the most that crypto has done has poorly imitated the foreign exchange market with DEXes.

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  6. Stocks are not a golden ticket. Anyone pushing them has an agenda. Usually to get you to buy stocks.

    Stocks in general have a track record of being profitable over the long run, so there is a lot of faith in them.

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  7. Stock market has proven it self for over a century, crypto has barely been around for 10 years and became a speculative asset in 2017.

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  8. Crypto as a whole isn’t a scam, but most projects outside the top, well two really, are grossly over valued and likely to fail.

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  9. Because stock in a company entitles the bearer to certain things, including dividends from said company that come out of that company’s profits.

    Crypto entitles you to whine on the internet about how your crypto is doing.

    This is why the stock market is down like 30% on average but Crypto is down over 70%.

    Earnings vs Stock Prixe is the basis for how stocks are traditionally valued. That’s been less the case the last 15 years, which is why with the cheap investment money drying up the market is dropping hard, but it’s *way* worse for Crypto which generates very little actual profit outside of trading tokens.

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  10. Because you own part of a company now – it is something tangible. You get actual voting rights, effectively a bit of influence on the company you own. Obviously $5 won’t buy a lot of influence if you invest in Microsoft or something, but it’s still a real thing.

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  11. Hopefully a bunch of young people saw this thread and realized crypto retail investors are too dumb to understand the difference between owning a piece of a company that makes money and owning a digital token that does nothing.

    Nothing says “I just look at lines on a graph” like this thread.

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  12. The stonk market earns real money through legit business. They are real life companies. Yes it can and is manipulated. I have both but come on !! Really !!

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  13. A couple things.

    Companies create tangible value so it’s viewed differently right off the bat. Crypto is seen as speculative future value creation at best.

    The other thing is that there’s waaaay less disincentive to bad actors in the crypto space due to more anonymity and a lack of regulation.

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  14. Easy, fake currency money offers no real world value. Stock market provides opportunities to invest in real companies or industries. Plus it’s backed with over 100 year history.

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  15. To be fair to invest in stocks is to assume that the world will keep on producing and selling more goods and services, and that overall, there is optimism that the world in the future will have made money and expanded from where it is today. While there are ups and downs, data from the last 100 years or so supports this. Of course a nuclear war (for example) could torpedo this.

    To invest in cryptocurrency is to assume either that lots of other people will invest in (the same) cryptocurrency you invest in (increasing demand), or assuming that (the cryptocurrencies you invest in) will become an intrinsic part of the mainstream world, and that in doing so, there are more buyers than sellers. Neither of these are certain.

    So I don’t think it is a fair comparison to just consider them both graphs that go up and down.

    Additionally I read on here so often the ingrained belief that blockchain is “THE” invention of a lifetime, and that like the printing press or microchip it will revolutionize the entire world; all preexisting systems and technologies will be scrapped and blockchains will take their place in all markets and sectors. This is a fantasy.

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  16. Crypto is a young and unregulated market. Golden haven for scamemrs and rug pull projects feigning legitimacy. I’m sure there’s a lot of money laundering and insider trading going on too. It’s the wild wild West of the financial trading world.

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  17. Because with stocks you are actually owning a part of a REAL company with physical assets and revenue . With crypto / Bitcoin you own basically nothing ! Bitcoin started as the “internet currency” and it failed miserably , then the Bitcoin Maxies changed the tons to ” Store of value / hedge against inflation ” and here are are going through inflation and again Bitcoin failed miserably ..

    In short , crypto is NOT the same as the stock market .

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  18. Damn, some people here are super delusional. Crypto cannot be compared to stocks, they barely have any similarities. Fiat is what BTC was always compared to, if you don’t know why, you should probably study a lot more before posting stupid questions.

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  19. Whoever told you the stock market is a golden ticket, is a dumbass. Stocks do make money over the long term, mostly, at least if you pick the right ones with an actual profitable company that you own a piece of.

    You get none of that with crypto, it’s commodity speculation at best, currency speculation at worst.

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