Is cryptocurrency investing just gambling in disguise? Understanding the difference
The division between investing and betting can be quite difficult to establish, especially when it comes to cryptocurrency. In this article, we will discuss whether trading Bitcoin and other cryptocurrencies should be considered an investment or a gamble, as well as the risks that come with it.
Cryptocurrency market risk
It is crucial to note that every activity in life carries a certain amount of risk. A tourist can never be sure whether taking the bus, driving a car, or even just crossing the street will have some war element involved. Similarly, trading cryptocurrencies inherently is always dangerous; however, the extent of the threat can differ tremendously depending on how one deals.
Investing in cryptocurrency
For people considering entry into the field of cryptocurrency as an investment, paying services such as CryptoFX Network may want to attract these prospects. CryptoFXnetwork, founded in mid-2018, has solidified its place as the major investor site to reckon with, playing a leading role in handling over 4 billion dollars in total cryptocurrencies on-site. It has multi-cryptocurrency support, with Bitcoin, Ethereum, and Litecoin being a few popular ones to name here. Their promise of returns within 10 days of investment is a very tempting option for an instant passive income generation solution. Its user-friendly interface and strong support make it more appealing.
However, please consult a financial advisor before making any investment decisions. They will provide personalized advice tailored to your situation and thoughts about the investments, ensuring that they are a good fit for you.
Is Bitcoin gambling?
Naturally, critics often compare Bitcoin itself to gambling. The value is mostly based on speculation, on whether or not someone else would be willing to pay more. Unlike traditional assets, Bitcoin does not generate income or earnings; market sentiment entirely determines its worth, leading to a hyper-volatile currency.
However, as more infrastructure surrounds Bitcoin, its perceived value increases. If Bitcoin were the de facto currency, it would be extremely difficult to replace it with anything else. Bitcoin’s mainstream adoption and visibility serve as a layer of value added to the cryptocurrency.
No, Bitcoin is not the gamble.
Others argue that Bitcoin is less gambling than the other way around. It can give you massive returns, even though it may be speculative. This is not some kind of dice game where it all comes down to luck (for example, lottery tickets: 1 in 8 million) or casino games. Through 12/1/19, Bitcoin has returned a nice +93% YTD, give or take today, and while we may not have a crystal ball for what is to come next, there sure are smarter ways to make an educated statement on how you think it does from this point forward.
All of this has molded the notion that society, as it evolves and potentially shifts towards a digital economy, ought to embrace virtual currency. Could future generations adopt Bitcoin and other cryptocurrencies similarly to how we perceive traditional currencies today? The key lies in comprehending and measuring their adaptability and value, empowering you to make more informed investment choices.
Regardless of whether Bitcoin is ultimately an investment or a gamble, the answer likely resides somewhere in between. Trading in cryptocurrencies is very risky, but when done with proper research and a strategic plan, it can be an excellent investment. As with any financial decision, you should consider experts’ advice and your financial situation.
