Tag: stock market

January 2, 2023
/ Leave a Comment on Is Stock Market The Same As Gambling?

5 min
1 year
945 words

Tagged Gambling, investors, share market, stock market, traders

Is Stock Market The Same As Gambling?

Most of the traders say that the stock market is also a gambling. Some of the traders will do trading like gambling, just buying the shares and selling without knowledge.

keywords – Stock Market, Gambling, traders, share market, investors

Most of the traders say that the stock market is also a gambling. Some of the traders will do trading like gambling, just buying the shares and selling without knowledge. This may lead to loss. Trader’s should not think that both stock market and gambling are the same.

Stock market is not a chance of winning or losing like gambling. You have to buy the share and sell the share to make a profit.

What is a stock market?

Stock market or share market is a place where investors or traders buy and sell the shares of companies. Stock exchange is a centralized place where the investors can buy and the sell the shares of government and other companies.

What is gambling?

Gambling is the activity of betting money in a game. Examples for gambling are betting in a horse race, playing in a casino where you will either win or lose.

How does the stock market differ from gambling?

Let’s see how the stock market is different from gambling for the below reasons.

Ownership of stock

On buying the stock or share, the trader will also become the owner of that company. The company’s profit will be shared with the trader. Buying a share is nothing but claiming for the assets of the company. The trader can buy more shares of a company to get the ownership of the company. But most of the investors don’t like to get the company, instead they will claim for the profits. But in gambling, the ownership will not be given to the player.

Value of the Company

To find the company’s value in the future is a difficult task. However, the trader should make a study of present value and profit made by the company. The price of the stock depends on the current value of the company and its profit in future. The price value of shares will be changing randomly.

In some cases, investors will buy the shares of low value companies believing that the company will earn profit in future. While playing casino, you cannot say that you will lose today and will win tomorrow. Based on your luck, you may win or lose daily.

Facts and figures in trading

There is no way to predict a market. Suppose a trader is going to invest in Gold, he cannot predict that the share will increase by 20% and will get profit. The market may rise or fall. So the investor has to study the previous trading and should analyze before buying any share.

Based on the information, a good trader can predict when to come out of the market and when to buy the shares. The investor can assume, at what price the shares should buy and sell without loss or with minimum loss. The safer point will be known to the trader to minimize the loss. In gambling, you cannot do any research work. You won’t get any data to predict the game is about winning or losing. Based on the rules, the game is played.

Techniques in trading

There are many scientific techniques and algorithms available for trading. The techniques are tested and limited with a disciplined approach. To make a trade, a trader requires logic and reasoning skills. Trading charts, trends are used to study the market and help to make a trading decision.

If the market is going down, then the trader can come out of the share with minimum loss. In gambling, you don’t have any proven techniques to get profit. Here, once you lose the game, you have to lose all your money.

Zero Sum game

In gambling, only one person can win the game and all the remaining persons will lose their money. Many gamers have lost their money in gambling, which makes a change in their life.

But trading is not a zero sum game; here all the traders can earn at least minimum profit if they trade with knowledge. Suppose you have bought a share and are not gaining, then you can sell the share anytime without any loss.

Trading with Risk Mitigation strategies

The trader can limit his loss through risk mitigation. Unlike gambling, here when you suspect the market is going down then you can use the stop loss. Using stop loss the investor can stop trading and sell his shares to reduce the loss. But in gambling, you cannot come out of the game in between.

Time limit

In gambling, there is a time limit to play the game. Once the game is over, you can’t play anymore. But in investing, there is no particular time limit. The trader can buy the share and can hold it for many years. You can sell the shares when you want. The traders will get dividends from companies if they hold the share for many years.

Profit in Trading

In gambling you will become addicted to the game, if you win the game and earn profit. The next time you play, the chance of winning is not sure and the money will be lost. When investing money, you will get profit slowly so you would like to trade.

Conclusion

Stock market is investing money to buy the assets of the company and sell them to earn a profit. Gambling lies on the luck to earn a profit. Gambling is either winning or losing the game. Thus, we can conclude that the stock market is not like a gambling.

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Non-Fungible Tokens : Next big Thing or another random Trend?

Article

September 13, 2021
/ Leave a Comment on Non-Fungible Tokens : Next big Thing or another random Trend?

6 min
2 years
1,181 word

Tagged crypto, cryptocurrency, Digital, non-fungible, stock market

Non-Fungible Tokens : Next big Thing or another random Trend?

NON-FUNGIBLE TOKENS : THE NEXT BIG THING OR JUST ANOTHER RANDOM TREND?

AUHTOR : Vartika Vaishnavi

There was a change in conventional trust in the gold standard— “In Gold We Trust”—to the trust announced on U.S. currency— “In God We Trust”—to trust in software and networks— “In Digital We Trust”. So, let me tell you the real big thing that happened in the United States’ history was the slogan “In God We Trust” which was featured on US paper money since 1957. Now as a digital cryptocurrency, Bitcoin represents a shift in faith from “In Paper We Trust” to “In Digital We Trust.” In the last few years incredible innovation has occurred across business sectors revolutionizing the conventional lens through which these businesses were formerly seen. For example, the important financial markets notably the New York Stock Exchange which was formerly believed to be entirely the domain of the Wall Street were taken over by average people from the website Reddit in a show of total democratisation. Other recent discoveries have been propagated or accepted by the guardians of the new world order, i.e., the tech tycoons. In terms of its original aim, the growth and fall of bitcoin stands as a warning narrative in the digital age revealing how brilliant ideas that may confront power and capital accumulation become co-opted and conquered by capitalism. Even Tesla at one point announced that they will accept bitcoins as a form of payment.

Be it bitcoin or any other cryptocurrencies they all rely on blockchain which is a critical type of tech. A decentralised network that keeps track of transactions in the form of an electronic ledger is best characterised as blockchain. When a block’s storage capacity is achieved, it is ‘chained’ onto the preceding block, establishing a ‘blockchain.’ As a result, blockchain’s structure makes it almost impossible to destabilise the system. One of the reasons behind blockchain’s attractiveness is decentralisation, which ensures that no one person or group of people controls the system. Fintech is one of the first industries to understand and strive to utilise the enormous potential of blockchain technology which is why there are so many currencies on the market.

The Non-Fungible Tokens (“NFT”) is a contemporary product that owes its creation to blockchain technology. To fully comprehend NFT, one must first comprehend the distinction between fungible and non-fungible assets. A fungible asset, such as money or bitcoin, is one that may be traded for other fungible assets of the same type. In layman’s words, if a bill of money were swapped for a comparable bill or two bills of equal value, the bearer would see no distinction in monetary terms. Each NFT, on the other hand is truly unique, non-transferable and has a separate value thus no two NFTs are replaceable. NFTs have a distinct place in the art world particularly in the digital art world due to their unique features. There is no one definition of what NFTs is as evidenced by the cases that have occurred thus far. With bids exceeding USD 2.5 million, Twitter founder Jack Dorsey endorsed NFT in his tweet. In a similar spirit, Christie’s sold an artwork as an NFT for USD 69 million. As can be seen, the sums involved are far from insignificant. The origin of the NFT itself is one of the most critical questions that emerges. So, what precisely did the customer get? The buyer receives something close to a certificate of ownership for the piece of art, but unlike artwork sold in the real world he does not usually get the copyright to it. In most situations, the seller retains ownership of the copyright and other intellectual property rights. The purchaser receives a “token” that serves as proof of ownership of the original artwork. And, thanks to blockchain’s safety the possession of the NFT in issue cannot be interfered with.

In India, there is presently no legislation prohibiting the trade of NFTs. NFT has indeed been classified as a cryptocurrency and there are speculations that India will pass legislation restricting the usage of private cryptocurrencies. Possession, issuing, extraction, selling and exchanging of crypto-assets seems to be on the rise as a criminal offense. India plans to develop a mechanism for the adoption of official cryptocurrency in its stead. The RBI attempted to prohibit banks and other authorized businesses from enabling bitcoin transactions in 2018 but that prohibition was later overturned by the Supreme Court on March 4, 2020, in Internet and Mobile Association of India v. Reserve Bank of India, with a three-judge bench consisting of Justices R. Nariman, Aniruddha Bose, and V. Ramasubramanian. The court examined the issue largely through the prism of Indian Constitution Article 19(1)(g), which protects freedom to exercise any trade or engage on any profession or business as well as the fairness principle. The Securities Contract Regulation Act of 1956 may make trading in NFTs illegal, adding to the uncertainty. If an NFT is determined to be a contract in reliance for the purposes of the SCRA, it will be illegal to trade, sell, or acquire NFTs privately further aggravating the situation.

Long story short, India has an acrimonious and tumultuous history with cryptocurrencies and NFT has yet to gain traction in the Indian market or among authorities. While it is hard to anticipate how the cryptocurrency of India bill will be framed, the present approach demonstrates that private firms and individuals involved in NFTs and cryptocurrencies are on slippery surfaces. It is essential to recognize that bitcoin has acquired worldwide popularity. Bitcoin’s value skyrocketed in 2020 prompting many new investors to express great interest in it. Tesla’s 1.5-billion-dollar investment in Bitcoin, as well as their statement that it will be accepted as a form of payment added to the momentum. Coinbase, a cryptocurrency exchange located in the United States, has declared its public offering. As a result, it’s critical to consider if a ban is the best way to prevent cryptocurrencies from being misused, especially given recent worldwide advancements in the field. It will be fascinating to see how the next step in the cryptocurrency tale unfolds now that the country’s Supreme Court has removed the prohibition on cryptocurrencies. Though the cryptocurrency community in India is ecstatic by the decision, the fact that the RBI has the legal power to submit a review petition cannot be totally discounted. Because we live in an age where technological advancements are unavoidable because each one will undoubtedly bring with it new risks. It is critical to constantly update the legislation in order to keep it up to date with current changes.

REFERENCES:

https://www.cnbc.com/2021/03/15/india-plans-cryptocurrency-ban-will-penalize-miners-and-traders.html#:~:text=News%20Videos,India%20will%20propose%20a%20law%20banning%20cryptocurrencies%2C%20fining%20anyone%2
Ridhima Saxena, India’s Crypto Investors Weigh Options Ahead of Impending Ban, Bloomberg Quint, February 14, 2021, https://www.bloombergquint.com/business/indias-crypto-investors-weigh-optionsahead-of-impending-ban
Internet and Mobile Association of India V. Reserve Bank of India, Writ Petition (Civil) No.528 of 2018
Section 18A, Securities Contract (Regulation) Act, 1956
Section 2(ac), Securities Contract (Regulation) Act, 1956

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