Frankly, some cryptocurrencies are like a gamble. It's like walking into a pub and putting money into a fruit machine and you could get lucky and get a return on that supposed investment. But in reality, quite often, you don't win. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions achieve financial freedom through our website, podcasts, books, newspaper columns, radio shows and premium investment services.
Even experts are divided on whether cryptocurrencies are a good investment or not. Some famous billionaires like Elon Musk have promoted cryptocurrencies such as Bitcoin (BTC -2.88%) and Dogecoin (DOGE -1.95%) on social media, while other investors such as Charlie Munger and Warren Buffett have expressed criticism of the cryptocurrency. Too many people believe that investing is gambling. Turns out investing isn't gambling.
Is investing a game of chance? Well, that depends on your investment strategy. In principle, the waste of resources involved in the creation and operation of crypto exchanges is no worse than in other spheres of the game. But in those cases, at least it's recognized as a game of chance. However, the delusional gambling enthusiast has surpassed the crypto fan that gambling is regulated.
As long as they are smart and play in the safest online casinos or bookmakers, they are protected. Steven discovered the potential of bitcoin early on and had a talent for trading. But even if he had that money now, his addiction means it would soon be wasted. For example, if you reach the time it would take you to learn these simple casino games for beginners to how long it would take you to manage the simplest cryptocurrency, it wouldn't even be a competition.
The initial creators of cryptos such as bitcoin also receive seigniorage if there are bettors who are willing to buy the initial shares issued in exchange for “real money”. However, these are technological advances resulting from the digital age and do not depend on being connected to some cryptographic element. It's hard to achieve this level of stability when your entire net worth is tied to something as volatile as cryptocurrencies. But some cryptocurrencies are more dangerous than others, and choosing the wrong one could be a bet.
The current penchant for people to purchase crypto items, fueled by incessant marketing and word-of-mouth recommendations from enthusiasts who have already purchased, will end in tears. First of all, although there may be some racing bettors who refer to their flutter in a nuisance as an investment, it really is a gamble or speculative bet. If you choose cryptocurrencies based on how modern they are or how much their price has increased, that's more like gambling. The main difference between betting and investing is that the investor will use diversification tools to mitigate risks and reduce the likelihood of loss.
But there are many examples that will help you understand why trading cryptocurrencies such as Bitcoin and gambling is different. Fears are growing about how unregulated trading and the promotion of crypto assets are creating a new generation of addicts. Bettors can be attracted to alternative crypto through marketing, and if the process of becoming participants is relatively simple. The combination of stories of this wonderful “esoteric way of investing” and the nebulous nature of cryptocurrencies has created a lot of interest.
Most of the best online crypto gaming sites offer Bitcoin as a viable payment method, and some are also willing to allow Bitcoin withdrawals from casinos.