Currency speculation is a financial activity, and its scale, trading activities, supervision, complexity and risk management all indicate that it belongs to the financial category. Furthermore, the speculative and volatile nature of cryptocurrencies makes them a high-risk financial instrument but with different characteristics than traditional financial assets.
#Is currency speculation finance?
Short answer: Yes.
Detailed answer:
Speculation refers to the act of buying and selling digital currencies on cryptocurrency trading platforms. Since cryptocurrencies are highly speculative and volatile, speculation is also widely considered a financial activity.
Reasons to support currency speculation as financial:
It is important to note that there are some key differences between cryptocurrencies and traditional financial assets such as fiat currencies or commodities. Cryptocurrencies, for example, typically have no central authority to control their issuance, and their value depends primarily on supply, demand and speculation. Therefore, some people believe that currency speculation is a new asset class with unique characteristics and risks.
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