• Home
  • Blog
    • Business Partner Magazine Archive
  • Free Contests and Giveaways
  • Resources
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

Is Cryptocurrency an Investment or Gambling?

July 12, 2021 by BPM Team

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
Two miniature businessmen shaking hands while standing on bitcoin cryptocurrency

Cryptocurrency is still unfamiliar territory to most. Some have never even heard the term despite the industry existing for more than a decade now. As it has yet to become a household term, its nature is often compared to gambling rather than investment or trading.

Warren Buffett, CEO of Berkshire Hathaway, even goes as far as calling it a gambling device. In a Berkshire Hathaway annual meeting, Buffett stated, “It’s a gambling device… there’s been a lot of frauds connected with it.”

Charlie Beach, who works for the cryptocurrency platform Lendingblock, said to investors, “Bitcoin is an investment only suitable for the sophisticated investor and even then only as a small part of any portfolio.”

Visit this website to learn more about how you can start trading.

What is Gambling?

The majority of gambling is harmless, low-risk social activity for any participant. The kind of gambling that is widely known and the reason why the term has such a negative connotation is the kind that involves casinos. It is the home to high-risk and high-reward gambling.

According to McGill (2008), gambling has two types of games: luck-based and skill-based. Games of luck are games in which the results depend, either partially or totally, on luck. Practice does not increase a person’s chances of winning, and neither knowledge nor skill has any control over the game’s result. On the other hand, games of skill are games in which a certain level of knowledge or skill is required; the player can, at least in part, control the result of the game. Practice can make a person a better player.

What is Investment?

Investments are either an asset or item that is acquired with the expectation of its value rising in the future to convert into profit. Hayes (2021) said that investment could refer to any mechanism used for generating future income, including bonds, stocks, real estate property, or a business, among other examples.

Although, investments are not without risks. Cryptocurrencies’ main feature that makes them both appealing and dangerous as an investment tool is their volatility. Volatility is a finance term that depicts how the value of an asset varies from time to time.

What are their differences?

Even putting cryptocurrency aside, it is true that investing and gambling have similarities in the aspect that both put their capital at risk for maximum profit. On the contrary, they differ in how gambling will never have certainty in knowing which will provide them profit in most circumstances. It is still, ultimately, a game of luck most of the time.

Investments, however, have more sources in which they can gain relevant information on where they should put their capital on. Investors, and cryptocurrency investors, also have the chance to pull out their investments to avoid major losses, something a gambler may not always have the option to do. Cryptocurrency investors can also invest in multiple areas to cover the losses they acquired.

Additionally, there are tools such as Bitcoin Prediction that lend insights on the market’s standing that aid investors in planning their next financial move.

Conclusion

It’s all about perception, as both carry varying degrees of risk. If you were to invest in something without any form of preparation and solely believe in luck, then it may seem like a gamble. Many compare cryptocurrency investments to a game of poker where you can calculate the probability and decide whether to fold or bluff. In poker, the player has the privilege to make certain decisions based on experience and skill. Nevertheless, a good hand doesn’t necessarily guarantee victory, even in poker.

Blockchains, also known as cryptocurrency’s databases or ledgers, may provide the necessary information you need to turn that gamble into an investment. However, these ledgers are passed through a network and have no central authority. As such, network participants must agree on the validity of the transaction before it can be recorded.

Disclaimer: This article is not intended to be a recommendation. The author is not responsible for any resulting actions of the company during your trading/investing experience.

You may also like: Is It Good Time to Invest in Cryptocurrency?

Image source: Dreamstime.com

Filed Under: Finance Tagged With: bitcoin, cryptocurrency, finance, gambling, investment, Trading

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • Emergency Funds: How Quick Loans Can Save the Day in the Philippines
  • What Can You Do With An Education In Marketing
  • How Your Business Can Manage an Increase in Customer Demand
  • Used Toys & The Circular Economy – How Pre-Loved Toys Help Us Save Money & The Environment
  • Reasons to Hire a Corporate Attorney for Mergers and Acquisitions

Categories

Archives

Make Money Online – Free Course

  • Discover All The Shortcuts To Affiliate Marketing Success
  • Find Out How To Fill Your Site With New Leads And Customers
  • Discover How To Turn Your Passion Into Profits
  • Learn How To Write Copy That Gets Results Fast!
  • Discover How To Create Promote & Sell Your Own Products Online
  • Everything You Need To Know About Marketing Money Online
  • Strategies For Successful Web Entrepreneurs Inside
  • Discover How To Invest Smarter Grow Faster And Retire Rich
  • Email Marketing Strategies For Marketers And Entrepreneurs
  • Free training reveals how to build a successful six figure income online
  • Discover The Mindset Hacks You Need To Succeed
  • Free Marketing Memberships – Make Money Online

    Make money online free marketing memberships

    Tags

    Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design Digital marketing ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

    Disclosure

    We earn commissions if you shop through the links on this page.

    Digital Marketing Agency

    ReachMore Banner

    Business Partner Magazine

    Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

    Have a look around the site to discover a wealth of business-focused content.

    Here’s to your business success!

    Copyright © 2023 - Business Partner Magazine·