The answer to the question is opportunity costs. When we choose to have an instrument to invest in instead of opting for an alternative one, we run the risk of potentially losing the chance of gaining a greater percentage of interest from the instrument that we did not invest in.
Since determining whether an investment would be profitable or not is a difficult thing, whenever we choose to invest on a product instead of another, this risk would exist continuously – and in the perspective of economics, this potential loss is called opportunity cost.
