> Have you ever thought why there are no cheap capital assets sold in mass markets for public that provide good ROI for no additional effort? (this is good question for armchair economists)
Pretty much for the reason you covered in paragraph one to be honest.
If I can achieve good with 10k and someone else can achieve awesome with 100k then the person with 100k will win (assuming they can handle demand).
It's pretty obvious (if you look at..well every economic system ever really) that capital begets capital.
It's not a huge thing, the US had this issue at the turn of the 20th century.
Well, the other obvious reason is if everyone can achieve "good" for 1k, everyone will make the investment, leverage the asset, and the ROI will disappear because it was easy & accessible to everyone and becomes highly competitive.
Bitcoin mining was a good example. Everyone has a graphics card, and mining was pretty trivial. Great example of a cheap capital asset with low effort to monetize. Quickly, the ROI slimmed until only large scale operations with low costs and good economies of scale were profitable.
Yep but even there the people with the large amounts of capital won once GPU's stopped been effective since they could afford ASIC's.
I think on some level society has always known this, having access to large amounts of capital doesn't guarantee you'd win but if someone offered me the choice between starting a game of monopoly with $100 or $100,000 I know which I'd pick.
Fun trivia aside, Monopoly was created to demonstrate that activities that promote wealth creation are more beneficial than ones that allow monopolists to run amock.
Pretty much for the reason you covered in paragraph one to be honest.
If I can achieve good with 10k and someone else can achieve awesome with 100k then the person with 100k will win (assuming they can handle demand).
It's pretty obvious (if you look at..well every economic system ever really) that capital begets capital.
It's not a huge thing, the US had this issue at the turn of the 20th century.