Investing in cryptocurrencies is a business. As with any other business, there is no guarantee that the money invested will bring approx. Cryptocurrencies are compared to casinos due to the randomness and unpredictability of the market. But this is not entirely true. To understand why it will be useful to read several online casino reviews UK 2023. The main thing that distinguishes them is that casinos are games that should be fun, and therefore all casino operators play according to pre-voiced rules and make sure that the player is interested. Randomness in gambling is only part of the process. The cryptocurrency market has more complicated rules, and randomness is its basis.
However, financiers believe that cryptocurrencies have nothing to do with investments. At the same time, popular businessmen see digital assets as a hedge against inflation. Which of them is right?
At the moment, the cryptocurrency market is characterised as follows:
- The inevitability of transactions.
- An opportunity for anyone to check their validity.
- Computational complexity at a predictable rate.
- High volatility.
Why are cryptocurrencies compared to gambling?
High volatility of cryptocurrencies is the main reason why many investors do not trust digital money. However, sharp jumps in the value of different coins are a way to hit the jackpot for the so-called “short sellers” or short-term investors who make money on changes in the value of assets.
The unpredictability in cryptocurrency investing is what makes this area so similar to casino games. However, the main difference between gambling and investing is that the investor will use diversification tools to reduce risks and reduce the likelihood of losses. A casino player does not think about using tools, as he only hopes for his own luck.
What is the problem with cryptocurrencies?
The point is their popularity and ease of interaction. At the moment, more than a third of Americans own bitcoin, while their motivation to buy cryptocurrency is explained by the fear of inflation. At the same time, experts found that approximately 21% of investors in cryptocurrency rate their knowledge of this area as “low”. 36% of respondents said their understanding of the sector was “poor” or non-existent when they made their first investment.
Too many people buy blindly without knowing what they are doing and are being influenced by price increases and other people encouraging them to do so. The concern is that people are investing significant amounts in cryptocurrencies and do not understand what they have bought.
Thus, it turns out that with all the variety of tools for interacting with the cryptocurrency market, most people do not understand how to interact with it and simplify their interaction to a format similar to gambling. Make an investment and then have time to withdraw money at the most appropriate but unpredictable moment. Thus, with all the technological and market uniqueness of the blockchain and cryptocurrencies, people themselves have built an attraction out of this casino.
Those ideas that include cryptocurrencies and blockchain cannot be compared with casinos or gambling. Nevertheless, people saw in them the possibility of making quick and easy money, which psychologically and emotionally works for a person in a similar way to a casino. As soon as crypto-currencies became a mass cultural phenomenon, some people began to play with them, while other part in a hurry, organised their own “crypto-casinos” with the sale of courses and insights. Therefore, it is worth perceiving this area correctly and dividing it into categories: “gambling area of crypto-trading” and “economic-technological area”. At the same time, modern casinos are actively introducing blockchain technologies to ensure the financial security of players and are more likely to belong to the second group than to the first.