Crypto investing and Gambling—squint a little, and they are almost the exact same thing. The idea is to put money in, and hopefully, more money comes out. At a time, it might have been differentiable, but now that you can invest and gamble with cryptocurrency since the introduction of crypto casinos, that gap has thinned out or closed completely.
This article compares and contrasts the similarities and differences between crypto investing and gambling.
The Underlying Resemblance to Gambling
Gambling is a game of chance that simply pits you against a casino; this is often carried out by wagering fiat currencies or Bitcoin, in the case of Bitcoin casinos, with the promise of a return on your investment. Whether Bitcoin casinos in Canada — like on Michael Graw’s list— or anywhere else around the world via offshore casino sites, the principle is the same: you’re wagering or betting on an outcome and having fun while doing so.
Some MPs as recent as 2022 were the first to draw a correlation, as seen in this excerpt:
“Given retail trading in unbacked crypto more closely resembles gambling than a financial service, the Government to regulate it as such.”
According to the members of parliament, cryptocurrencies’ volatile nature makes them an asset without intrinsic value. Their value being in constant flux and causing many consumers to lose or gain large sums makes them eerily similar to gambling at no ID verification casinos.
However, members of the CyptoUk argue with these claims and reject the Committee’s observations as unsubstantiated, false, and fundamentally unhelpful. They stated that their claims are potentially misleading and do not reflect the true nature of the Cryptocurrency Industry.
How Investing in Crypto is Different from Gambling
So, if it is not gambling, how does it differ, in what areas, and by how much?
The reality of this discussion is that this crypto investment could either be gambling or investment based on initiative and motive.
A typical crypto investment involves a series of short-term or long-term strategies. The investor takes ownership of assets after intentional research and analysis to mitigate the chances of losing these assets by utilizing various tools and monitoring market trends over a long period of time.
Gambling, on the other hand, is only short-term as long as the event being wagered on will take place and the outcome is determined by a mix of both luck, like which cards a player is dealt, and also skill. For example, games like poker use a higher level of skill than other games of chance.
What this means is that anybody who approaches cryptocurrency investment with the aim of getting quick riches in the short term with little plans to actually own and nurture any assets is approaching it like gambling, and without proper risk management, they may be putting themselves at risk.
However, for crypto enthusiasts who approach investing with a long-term mindset and take the time to research and learn about digital currencies and trends, the rewards just may pay off. Enthusiasts can read books, research online, listen to crypto podcasts, and inform themselves about the crypto market. With this knowledge, crypto investors are more likely to see large gains over time, as compared to diving in blindly.
Investing as an Investor and Not a Gambler
Now we know that gambling and crypto investment, although both aim to turn a profit, take different approaches. Both have individual strategies, but they differ significantly in the timeframe. Investors bide their time, while gambling requires enthusiasts to live in the NOW.
With such a thin line between both, here’s how you can toe the line and ensure you invest as an investor. It starts with soaking up as much knowledge as possible.
Understanding the crypto landscape and knowing when to invest is what makes you an investor and not a gambler. With the right information, ideology, and philosophy, investing in cryptocurrency diverges rather sharply from gambling.
It is important to note that even as an investor, there will be times when your decision-making will be driven by a hunch rather than calculated tactics. Sometimes, you will need to take that risk and set that trend before other investors catch up. What sets the experts apart from the rest is knowing when to follow their guts and when to let the charts do the work.
Good luck!
