Investing in cryptocurrencies like Bitcoin and Etherium is considered a bit like gambling, and for a good reason. For starters, both gambling and speculating on cryptocurrencies are risky endeavors. This is because you can’t really be sure which way the wind blows with both. The same also goes for stock market trading. All of these are considered gambles because you can either win or lose from such activities.
Although speculating and gambling are considered siblings, they aren’t actually twins. Yes, they have a lot of similarities but they also have quite a few differences. To show you what exactly these similarities and differences are, here is a list:
Similarities Between Gambling and Cryptocurrency Investing
The main similarity between cryptocurrency speculation and gambling is, as mentioned earlier, you never know which way the wind will blow for each one. You can either end up losing or winning big time. For most, that is where the similarities stop. In reality, there are more differences in both than there are similarities.
One thing that you can credit for the difference between both is that gambling in itself isn’t totally a huge risk. The risk is dependent on the game that you pick to play. Actually, if you are to look at it from this perspective, they are pretty similar since investing in cryptocurrencies isn’t really all a huge risk. The risk is dependent on what type of currency you are thinking of investing in. Some are more likely to make you money than others, just like in gambling, some games are easier for you to win at than others.
If you were to actually compare cryptocurrency speculating with gambling, it would be like you playing poker. You have a chance of winning big if you are dealt a good hand at the beginning and in the next draw. For cryptocurrency speculating, you stand a good chance of making money from it if the currency has a good reputation from the start and the other actions that affect its rise are also favorable after.
Differences Between Crypto and Gambling
When it comes to the differences, there are actually quite a lot for you to consider. For starters, there is no such thing as a house advantage when it comes to cryptocurrencies. In gambling, a lot of games give the house a bigger edge, like in some table games, slot games, and lottery or scratcher games. There are also games where you have a higher chance of winning, which are games with lower house edge.
Another difference between these two is the regulation that governs gambling and the seeming lack of such when it comes to Bitcoin. Since the latter is a decentralized form of currency, there is no government regulation, therefore there is a bigger chance of losses that cannot be recouped when someone hacks into your account and steals your investment.
Gambling follows lots of rules and regulations worldwide and people cannot play in certain online casinos if these don’t have licensing in their area. For instance, there are casinos that you can play from home in certain states in the US and there are some that you cannot. Crypto can be speculated on anywhere.
Also worth noting is that when it comes to cryptocurrencies is you don’t have to pay attention when you’re investing in it. You can dump your investment into one or two specific currencies and check on it every now and then to see which way your investment is going. When it comes to gambling, you can’t just dump your bankroll into an online casino and let it ride without you having a hand in how your deposit is used. You choose the game, you play the game, you choose when to stop playing. You also have to pay attention while you’re playing the game so you have a better chance of winning.
Another difference between crypto and gambling that is worth mentioning is the prevalence of scams when it comes to one versus the other. Cryptocurrency scams are more rampant that casino scams. It isn’t that the latter is scam-free. It’s just that with regulation and rules that need to be followed, and the law that has to be dealt with should a casino defraud a player, casinos are less likely to scam you than a Bitcoin or Ethereum dealer.
Volatility is another difference between cryptocurrencies and gambling. The fluctuation in the value of bitcoin is too unpredictable that you never know when the next boom or next crash is coming. While certain games in casinos, like slots and video poker, can be somewhat volatile and you never know when you will hit the jackpot, you can regulate how much you put in and stop at any time when you feel your luck isn’t with you.
Should You Invest in Cryptocurrency or Just Gamble?
The question some people ask when it comes to gambling and crypto is, which one is better? The answer depends on what you want to achieve, actually. If you want to have an investment that you can leave alone and gain from, if the conditions are right, then investing in crypto might be a good idea.
Crypto is a great long-term investment to make if you really want to gamble on it. If you want short term gains while having fun, then playing casino games and gambling is what you should try. There are games that can give you ample earnings when you play, if you are adept at it and actually take it seriously.
Who says that you can’t do both however? You can gamble and play your favorite casino games while investing in cryptocurrencies at the same time. You can even use crypto in your online gaming. You simply have to find the right casino that allows you to use bitcoin when you plan to play.
There are a few that now allow you to deposit funds using Bitcoin and a few other popular cryptocurrencies. You can even find casinos that offer higher bonuses when you deposit using Bitcoin. All you have to do is locate casinos that allow the use of crypto and compare which ones pay off higher bonuses and which ones give you higher chances of winning.