Before we get into it, we must clarify that this is not financial advice and should not be treated as such. We shall not be legally liable for any losses you may incur by investing in Bitcoin, and we urge you to do your own research before investing.
There is no question about it; there are people who are convinced that investing or trading cryptocurrencies is no better than gambling with your savings. On the other hand, others claim to know how the market works and seem to be able to make the perfect trades and get richer by the day.
There is always going to be risk involved when investing in crypto-currencies. We would argue that of all the crypto coins, Bitcoin is probably the least risky because of its wide market penetration, applicability, and the fact that a growing number of businesses and governments around the world recognize it more than ever before.
Even when participating in pastimes such as online gambling, using your Bitcoin can prove to be useful thanks to the fact that many online casinos are adding crypto as one of their payment methods. When you think about any investment you make – be it crypto or just regular stocks- the risk is never absolutely zero. The question is – how much of a risk margin are you okay with? Sometimes, the higher the risk is, the higher the reward.
Crypto is volatile, just like gambling, but there are real-life use cases and promising features of crypto coins like Bitcoin, making them valuable digital assets. If you truly believe that digital currencies will be the future, then investing in crypto is not gambling – it is an investment made on a concept that you know to come true.
Whether it is investment or gambling depends on you
Recently, there was a crypto coin premised around the popular Netflix Series ‘Squid Games,’ and the token was called SQUID. Many investors around the world bought the token, and the value of the coin rocketed. At one point, 1 Squid was worth $2856.65, and then just five minutes later, it was worth $0.0007. More than 40,000 holders basically lost everything they had invested into the token. The official website of the token went down right away, and emails sent to developers failed to deliver. There is still no certainty about what happened, but it seems like the developers pulled the plug and made away with millions of dollars.
Why did so many people invest in this coin?
Well, in this case, we would call such an investment a gamble. People simply bought the token without researching if it has any real affiliation with Netflix or the TV show. They did not research what features the token promised and what problems it aimed to solve. They simply poured money into the token, thinking that it would multiply simply because of its mere association with Squid Games, the TV show. Basically, this was more of a gamble and not a well-thought-out investment.
So, if you don’t want to gamble with your money and wish to invest it wisely, then researching the token and the project is extremely important. Knowing when to buy, sell, and hold onto your asset is also something that comes with experience, studying graphs, and actually putting in the time and effort to understand the market. It is important to analyze trends and make decisions based on data and knowledge. If this is how you invest in crypto, then we would say that you are investing and not gambling.
Tracking Bitcoin Value
Today, NFT seems to be the new buzzword. Some swear that these digital assets are the future, while others can’t seem to make any sense of it whatsoever. The question is – are you going to be an early investor in NFTs, or do you think it’s just a lot of noise over nothing? Because it could turn out to be, no one is making any promises either way.
Just like how the situation around NFTs is right now, there was a time when there was a lot of speculation around the newly introduced Bitcoin. Over the years, Bitcoin has risen and fallen repeatedly. Sometimes the rise and fall are steep and are gradual at other times. However, if you zoom out and look at the big picture, the value of Bitcoin has only gone upward.
Bitcoin was worth $0 when it was launched in 2009. By July 2010, it was worth $0.09, and by 2016 it was worth over $900. In 2017, the price soared to around $1000, and then in mid-May of 2017, it soared past $2,000. As of the time of writing, 1 BTC is worth $46,888. Essentially, if you had purchased $10 worth of Bitcoin in 2010 (when it was worth $0.09), it would now be worth well over $40,000.
At the end of the day, we don’t place much value on whether investing in Bitcoin is like gambling because there will never be a white or black answer to this. Many things are grey, and investing in bitcoin can be gambling if you want it to be, but it can also be a wise investment if you have a well-studied plan.
Investing or gambling is important because you determine how much you can afford to lose without causing a dent in your savings. Just like you should invest responsibly, you need to gamble responsibly.
Featured Photo by RODNAE Productions from Pexels
