Whereas Investment is the allocation of capital [money, time, willpower, knowledge, etc.] for a given project and in the same, hoping to ensure future gains in a certain period of time. Therefore, Bitcoin Cash is rather considered an Investment.

Not only, as it is a financial asset, Bitcoin Cash is an investment that generates returns over time and it is not necessary to apply it to financial products to generate profits, it alone manages to make its own profits using the demand factor. The more people are looking for and the smaller the supply is in the market, the currency tends to increase its price and, as it does not suffer inflation and with basic principles of emission reduction over the years (halving process), the currency will always have guaranteed compound gains.

When the individual decides to invest, he is practically 'lending' his money to a venture that over a certain period of time will generate more money for him, taking the example, when people are going to borrow money from the bank they are making a debt in return when he lends the money to the bank, they are investing capital which will have returns with interest for the period of time granted to the bank.

The same is true when applying fiat money to Bitcoin Cash, individuals applying money over time generates compound earnings. And the best part is that everything is done in a decentralized way where they don't need to put it in applications that generate quick profits, although there are platforms that can multiply it, just the fact that you already have Bitcoin Cash in the wallet, the return is guaranteed. For this, the holder only has to be patient and wait for time to resolve the interest issue.

Investing isn't saving

There are, however, many people who confuse saving as an investment, although there is a fine line of difference, the two terms are not the same. Saving is the act of store money, cutting some habits that usually make a person spend more at the end of the month, for example. Saving has to do with discipline in cutting expenses and with that 'praying' that the surplus can serve to meet certain future needs, the main objective in saving is to ensure that more money enters more in pocket than having more outputs in it.

Savings may seem easy, but in reality it is a very complicated process since it is practically almost impossible to cut expenses necessary for human life, often making the individual have to do a lot of gymnastics but with no practical results in sight, often ending up with people spending more than having money to spare.

While investing is giving your money to a cause that guarantees a return, saving is the ability to make budget cuts in order to have more money left over.

Saving requires a lot of unleashed energy where you often have to focus on the objective for which you want. If, for example, the individual wants to build a house, he has to be able to focus on that and ensure that he periodically saves enough to reach his goal. Investing on the other hand, leads the individual to apply the value with the ambition that there will be a return in the future.

Many people fall into the error of thinking that bank savings are investment, despite being considered that this type of 'investment' has no favorable return for the investor since these institutions remunerate these assets very poorly. However, using the money to Invest in Bitcoin Cash can be an act of great value, as it will have more return and the value will not suffer from inflation like fiat money.

Investment versus speculation

In today's world there are many people who like to invest in the crypto world, betting on assets and projects with a promising future and, in a first phase, end up making an investment (acquisition) of a product with a promise of guaranteed return in the future. But, as is well known, the crypto market is full of speculative currencies that may not yield returns.

Investment is the act of putting money into production with the promise of an assured return, while speculating is often the process of 'risk investment' where the return may as well be assured as not.

In speculation, the individual acquires a good with full confidence that it will appreciate, but this may not happen, it may take time to mature or it may be a complete hole making it lose money in speculation. When the individual, for example, invests in a speculative asset he is betting on a high-risk product that he is not even sure it will gain value over time.

Bitcoin Cash for example may well fit into both a safe investment and a speculative asset, analyzing:

• For those who acquired it at its peak in 2017, when it was located in four thousand dollars or so, he bet on an investment at the time, speculative, as he hoped that it would appreciate even more. This did not happen and the same ended up losing a large part of its capital during that period

• It's safe because it has an established trading market and, whether for those who invested while it was at four thousand dollars or when it was at two hundred there is a certainty of gains of more than 4000% in the coming years.

So Bitcoin Cash no matter what, is an investment. It can be 'safe or either speculative' depending on how long it was purchased. However, most crypto-actives have this speculative aspect very accentuated, largely because of its volatility, but its also not a market for people with 'heart problems' as it presents a large number of ups and downs.

Note: the individual, when investing, looks for a certain security for him, and conducts a series of studies to ensure that his capital is not 'drained' and only then, with in-depth knowledge about the business, he moves to action, investing the capital. This is where every investment makes a difference, assuming that everyone does this, so the 'speculative' investment will also have returns, as the investor, when he made the decision to put his capital in it, will already studied all the possibilities, and hence the maxim "only invest what you can afford to lose".

Another thing is to think that investment is a gamble and this makes many people bet on risky deals where they end up losing large amounts of money. Here, the individual makes bets at random without a previous study of the market and without any guaranteed return guarantee, luck often prevails to guarantee the return, betting is the same as playing the lottery,

...it must be remembered, that there is no such thing as a risk-free investment and every investor should be expecting to win or lose in this period.

Therefore, Bitcoin Cash is not a game, it is an investment where holders knows can guarantee returns during the period they intend to hold it.

Finally, why invest in Bitcoin Cash

A question with a not very direct answer, as each one has its own reasons for wanting to invest. Some invest because they want to get rich, others because they want an assured life stability, but what really matters is knowing why to invest.

But the question as a whole, it could be answered that everyone who puts their long-term money into Bitcoin Cash is looking for an improved quality of life, a satisfaction of success in the future and for that to happen it is always good to keep in mind what kind of investment in Bitcoin Cash the person is looking for.

Long term or short term investment?!

This will allow currency holders to also define their loss tolerance level, either in the medium, short or even long term. For those who use Bitcoin Cash as a store of value and thus take the currency with them in the long term, this investors are generally not concerned with daily gains, but periodic ones, they invest for the future and are sure that Bitcoin Cash will have enough earnings so that they can change their life permanently.

They knows that the currency has a future and with this they make investments secure with an assured return, others, however, make short-term investments and aim to obtain direct daily gains and thus be able to sustain their life model. However, both use Bitcoin Cash as an investment tool to completely change their lives.

Bitcoin Cash is an investment and should be treated as such, and everyone who puts their money into it is fully aware of wanting to generate income from it.

Disclaimer: informative article, not in any case intends to advice in investment purposes.

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