Are Cryptocurrencies a Safe Investment or Are They Like Gambling?
In this video the Alphaville editor explains why she thinks buying cryptocurrencies is more similar to gambling than to investing. She also explores how regulators and tax authorities around the world. Brought to you by Financial Times.
Software Development, Business, Investments, AI & Self Improvement.
1. the activity or practice of playing at a game of chance for money or other stakes. 2. the act or practice of risking the loss of something important by taking a chance or acting recklessly http://www.dictionary.com/browse/gambling?s=t
The definition of gambling is really broad, and you could practically categorize everything as a gamble for example taking the bus or driving your car could be gambling we are practically gambling our lives everyday so maybe the real question how risky is it trading bitcoin?
Is bitcoin gambling? yes it’s because it’s not an asset that produces value it’s simply put it’s out of thin air and it has no minimum value except for what other people are willing to pay for it, which is based on speculation.
But the more infrastructure built around it, it adds value to it, if everyone uses bitcoin how hard will it be to force everyone else to switch to something else? It will be super hard this is what actually bitcoin tries to do to real money, but they key is adaptation, stuff out of thin air has value all around us, bitcoin is just another one.
Is bitcoin gambling? no because even if it’s a bubble and it’s price is just a speculation alone, you can invest and make money if you base your decision on something it’s not probability alone like a lottery or casino games, also in the future it might be so well adapted that it might not even seem weird to use virtual money.
What if you were born in the future in lets say 20–30 years and it’s all that you know of, will it be risky? You would have the same perception of bitcoin as us dollars will you fear it? I don’t think so, the key is how can you measure adaptation and value can you calculate in some way and know if it’s over priced or under priced? Based on that do the decision to buy or wait for a crash and buy then? Will bitcoin crash and another one take it’s place?
Anything is possible but if you approach those question with research there is a way to make sense out of it, and it’s not math probabilities of chances it’s more and this is why I choose to say it’s not gambling, and it’s because everything in life is.