Is investment gambling after all?
“Investing is gambling, isn’t it? If you’re lucky, you’ll make money, and if you’re unlucky, you’ll lose a sentence?” Do you also have this kind of thinking? It is certain that there are a certain number of people who have the perception that “investment = gambling”. But investing and gambling are completely different activities like Bingo Bash Free Chips. It is safe to say that investment is a healthy economic activity and that the world economy is made up of people’s investment activities. This time, I would like to think about the difference between investment and gambling.
Investing is to manage assets, and gambling is to distribute the total amount
First, think about the purpose of doing that activity. An “investment” activity begins with investing the assets you currently own in order to increase your future assets. “Study now as an investment in yourself” is also an “investment” activity. Now, I am investing the asset of “time” that I own in the means of “study” for my future. If you can study properly and gain wisdom and knowledge for yourself, the “investment” activity will be successful. On the other hand, if you spend a lot of time studying and the content of your study does not help, then you can say that your “investment” activity is not working. In this way, in “investment” activities, the assets initially invested increase or decrease due to investment.cOn the other hand, what about gambling? gambling pays participation fees and other expenses in return for the provision of a service called “entertainment.” For example, in the case of horse racing, participants pay the participation fee based on the rate of dividends and the condition of the racehorse, but the final amount determined from the collected premiums (participation fee) is the dividend. It is the total amount of gold. In other words, the dividend is a mechanism in which the prize money is distributed to the relevant person up to the total amount of the collected premiums (participation fee). Of course, the management side (body) collects the management fee from the collected participation fee, so it is clear that the prize money does not distribute the total amount. In other words, regardless of the outcome of the win or loss, it is set so that the organizer, who is the management side, makes a profit, so even if the user temporarily earns a prize, the total If you think about it, the payment of the usage fee is set to be a loss.
The biggest difference is whether you can manage risk
The fundamental and biggest difference between investment and gambling. That is, “Can you control the risk?” When it comes to “controlling risk,” there is a very straightforward point. Think about that activity, “Can you withdraw when it becomes negative by some percentage?” For example, consider the various lotteries that are making yearly sales. There are many types of lottery tickets on sale, but let’s say you buy 100 100 yen lottery tickets at a time. If you win, even if it costs tens of millions of yen, if you don’t win, it’s 0 yen. It is a loss of 10,000 yen.
Gambling of investment activities
I said that investing can control risk, but not all risks can be controlled. No matter how information-oriented society is, it is not possible to grasp all of the investment projects. In addition, the element of luck is inevitably involved. Natural disasters such as earthquakes and typhoons occur at unexpected times, and as a result, they can have a significant impact on economic activity. Moreover, humans have endless desires, and even the term “investment” activity cannot remove the gambling element. As the word “money game” implies, the system aspect is so developed that “investment” can be used as a tool for making money as if it were a game, and it is easy to trade.