How has the land-granting system encouraged speculation?

The land-granting system, which allocated public lands to promote agriculture and education, often resulted in speculation as individuals and companies acquired large tracts of land with the expectation of future value appreciation. Speculators would buy land at low prices, anticipating that demand would rise due to infrastructure development or population growth, leading to substantial profits upon resale. This practice sometimes distorted land markets and led to inefficient land use, as speculative buyers held onto properties rather than cultivating them or using them for their intended purposes. Ultimately, while the system aimed to promote development, it inadvertently fueled speculative activities that prioritized profit over productive land use.