Investing in growing things that money can't buy

from Diary 2023-07-03 Investing in growing things that money can’t buy

nishio Some goods have a backing of goods that increase in value over time and some do not, and attracting investment money to those that do not ultimately comes down to a ponzi scheme. It’s the same with Pokemon cards, tulip bulbs, and value-added stocks, not just NFTs.

kensuu/status/1675718378676428801 I didn’t get to hear this, Yesterday, I heard that Ikehaya (@IHayato ) talked about something like “NFT should be more attractive from an investor’s point of view” on Twitter Space, and I’ll briefly explain why this is so… … View more

nishio So we have to go full circle and think seriously about how to make something that grows over time, and then we have to think about what kind of derivatives to make.

nishio The fact that there are more options for derivatives other than equity is in itself a good thing because it gives entrepreneurs more options. On the other hand, in the start-up phase of a “project that could grow”, the resources needed are not always cash, so in such cases, the “derivative” will be something that money can’t buy.

nishio Investors looking for “something they can buy with gold and get back more gold” cannot participate in trading in such “something they cannot buy with gold”. They will be in the same position as those without gold in the market for things that can be bought and sold with gold.

2024-04-08 This argument addresses the point that while some goods that increase in value over time have “backing,” investment money may flow into those that do not, which ultimately comes down to sponge scheme (one of the fraud-like investment techniques). Specifically, NFTs (Non-Fungible Tokens), but also Pokemon cards, tulip bulbs, overvalued stocks, etc. Having more options other than equity also gives entrepreneurs more options and helps them launch new projects. However, if the resource needed is not cash, then the project cannot be bought with money. Finally, it is stated that investors looking for something they can buy with gold and get more money back cannot participate in trading in something that cannot be bought with gold. This means that he would be in the same position as “a person without gold in the market for something that can be bought and sold for gold.”

relevance - Difficult-to-procure resources - A world where social capital is king

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