Is cryptocurrency gambling?

cryptocurrency gambling

Cryptocurrency is definitely not understood by 99% of people I have talked to, I myself thought that most people buying this type of investment were crazy.  How can something so intangible hold so much value.  I would not consider it gambling though.  If you go to a casino and put $100 into the slot machine there’s a high chance that you aren’t seeing that $100 in your wallet ever again.  If you put $100 to buy for example 1000 types of an altcoin into an exchange and buy some unknown altcoin there’s a good chance you might make your money back and even if you don’t make it back you still have 1000 of this particular altcoin.

In some peoples minds investing or buying bitcoins or other altcoins maybe considered gambling because you could perceive yourself to losing this money.  However in comparison to the stockmarket there is not much difference between buying a relatively unknown stock or buying a crypto coin.  Either could skyrocket or go nowhere.  The only difference in the latter is its much easier to get what little money you have out of the crypto market and into something else than it is to liquidate a stock.

One thing I wouldn’t advise is borrowing money from the bank to buy cryptocurrency, the crypto market is very volatile – one moment bitcoin for example could swing up $500 the next it could be down $1000, if I had borrowed $50,000 from the bank to invest in crypto I would be sweating bullets with every down tick of the coin price.  I came across a story on about this very thing where a man had borrowed $325k from the bank when bitcoin was at $1700 earlier this year with a plan to sell it at $10,000 in order to live a better life since he had been diagnosed with a terminal disease.  He purchased 191 bitcoins and by October his accumulation of bitcoin was worth over 1 million dollars, presuming he didn’t lose his nerve he is probably living comfortably on the west coast of the US by now.

Just this past weekend a friend of mine asked me if I wanted to go and hang out at a casino.  I thought that I would probably end up gambling away $100 or more with it all just disapeering into the casino owners pockets and then thought about what else I would want to do with that money, to me $100 is another 1/5th of an ETH or at the time of the thought it was 80 IOTA, now IOTA is at $5 so I would of been up $400 instead of down $100.  I told him I would rather buy some crypto and that I would buy him a beer and tell him about crypto instead.

So to summarize next time you think about going to a casino maybe buy some crypto instead – you never know you might get addicted to that as well.

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