Cryptocurrency has been the talk of the town amongst technophiles and investors alike. To many, the future lies in blockchains and various forms of microcurrency such as bitcoins, dogecoins or NFTS. For those knowledgeable on crypto and hoping to make some profit from it, feel free to visit these crypto bookmakers and make whichever investments you want to get the best profit out of them.
However, there is some dispute amongst experts regarding the nature of cryptocurrency. On the one hand, some argue that putting your trust and money into cryptocurrency would be considered investing in big money and rewards. On the other hand, some consider cryptocurrency to be more like gambling than investing because you are putting your money at risk and leaving it in the hands of a volatile and decentralised market. This is an interesting debate and one that could help us understand the concept of cryptocurrency and how it is regarded. Before getting into the discussion, we first need to know what cryptocurrency is and in what context it is used.
What is cryptocurrency?
The first matter of business is properly understanding what micro-currency is defined as and how it can benefit anyone involved with it. Cryptocurrency is multiple forms of digital money that are run without any centralised power or governmental intervention. The most well-known cryptocurrencies are Bitcoin and Ethereum, based on mentoring software and encryption through blockchain software. Even though Bitcoin has become the most famous cryptocurrency due to media exposure and its pioneering use, there are many other cryptocurrencies in circulation. Some of the most famous ones aside from Bitcoin are Ethereum, Tether, Binance Coin, and Dogecoin.
Blockchain software is considered one of the safest ways to encrypt cryptocurrency because the information collected is saved into blocks. These blocks store pieces of information which, when filled, close and link themselves to other previous blocks, forming what is known as a blockchain. The use of blockchain-based security is one of its key features. This makes cryptocurrency enticing to those who want to ensure their money is well-secured and that transactions are done both successfully and anonymously. Another benefit of cryptocurrency is that no third-party intermediaries like banks, courts, or monetary authorities are involved in transactions. This has been praised by many who see this as a democratisation of the worldwide financial system.
When it comes to cryptocurrency, there are two different schools of thought regarding the nature of crypto and its role in financing: whether crypto is a legitimate form of investing or simply a fancier take on gambling.
Is cryptocurrency an investment?
Some articles introduce crypto as a new type of risky investment. As with any investment, those who wish to profit from crypto need to understand it. It would be worth learning how the market works, how crypto will eventually become a reliable way to gain strong earnings and what signs the potential investor needs to look out for.
A very strong point in favour of crypto as a legitimate form of investment is how online financial markets such as Paypal and Block facilitate payments with it. Business giants like TESLA or Microcurrency have also spent billions on bitcoin from 2020-2022. This shows strong signs of trust in future cryptocurrency adoption in the market and encourages other markets to follow suit.
Investing in crypto also has cons, as your purchased assets might be vulnerable to hacks, potential anti-crypto banking and governmental regulations. These might cut you off from your earnings. There is also intense market competition in crypto, requiring the investor to decide which crypto projects will ultimately provide long-term profits and which are not worth pursuing.
Is cryptocurrency gambling?
However, other experts instead introduce cryptocurrency as a different take on gambling. Some articles advise finding the most reliable experts online to gamble with your cryptocurrency successfully. Others show more condemning pieces labelling crypto as a gambling activity at best and a Ponzi scheme at worst.
Interestingly, Katie Brockman’s piece on cryptocurrency makes an interesting framing that distinguishes investing from betting within the context of crypto. Brockman states strategic thought as a factor. Those who regard crypto as simply a get-rich-quick scheme are gambling, but those who trust that crypto is the future and will provide long-term benefits are considered investors.
Careful planning and portfolio diversification, as well as a willingness to take calculated risks, are also a sign of wise investing. Those who put their entire savings on crypto without any regard for the state of the market or potential losses are gambling with crypto rather than investing. Whether we consider crypto gambling or investing, it is never wrong to research, diversify, and take an educated risk on the market you genuinely trust.