2026-01-12 09:26:29

More and more people realize that capital flows are not just an accessory to trade flows—they are the true engine driving trade imbalances. But here’s a question: can we assume that these capital flows will be more likely to "plant seeds of employment, productivity, and innovation" in emerging markets? This logic still needs further consideration. Capital indeed moves, but where it flows and which sectors it enters are determined by market participants. Short-term arbitrage often wins over long-term development. From this perspective, capital flows drive changes in the trade landscape, but they do not automatically foster sustainable growth.

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0xTherapist

· 19h ago

Short-term arbitrage can never outperform long-term development. This sounds nice, but in reality, capital is always profit-driven. Who can blame them?

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WenAirdrop

· 23h ago

Short-term arbitrage beats long-term development—that's the reality. Capital is inherently profit-driven.

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SchrodingerProfit

· 23h ago

Well said, short-term arbitrage crushes long-term development, this is the reality🤷 Capital flows everywhere, but it doesn't flow into the places we want. It's both capital and trade; in simple terms, money rules everything, who cares about emerging markets. It sounds very rational, but it's just the nature of capital seeking profits, nothing new. The "seeds" of emerging markets are just for listening; real gold and silver still go into developed markets. The core issue of capital flow is still benefit distribution; without thinking about how to change it, we only analyze the phenomena. Short-term arbitrage wins, long-term development loses; after so many years of telling this story, it's still the same.

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ImpermanentPhobia

· 23h ago

Short-term arbitrage beats long-term development; that's a very harsh statement. Capital is just that pragmatic.

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GasWastingMaximalist

· 23h ago

Short-term arbitrage really stifles long-term development, and this is the true reflection of the current Web3 ecosystem. Capital doesn't care about sustainable growth at all; they're all chasing the next pump.

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CoconutWaterBoy

· 23h ago

Well said, capital is always profit-driven, regardless of long-term development. Once arbitrage mechanisms kick in, the dreams of emerging markets turn into leek fields.

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