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How To Tell If Cryptocurrency Is An Investment Or Gambling

How To Tell If Cryptocurrency Is An Investment Or Gambling

Investing has been a way to move people’s financial portfolios forward for years. Investing s a way to gain a profit once placing your funds in financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

In 2009 when cryptocurrency first came about, it raised many eyebrows, and as the years have gone by, more and more people are starting to warm up to the idea. However, when it comes to influencing, cryptocurrency has received a divided response from experts. Elon Musk is one of the names that have supported the new digital venture, promoting both Bitcoin (BTC) and Dogecoin (DOGE) on his social platforms. However, on the other side of the coin is Warren Buffet, who has famously stood back from the new age phenomenon. 

There is no getting around the fact that investments come with risks, and so does cryptocurrency. So the question we are wondering is, is cryptocurrency an investment or a gamble?

What Is The Foundation Cryptocurrency?

With all this conversation around the creation, we think it’s time we go right back and look at the foundation of what cryptocurrency is and its original purpose of creation. A cryptocurrency is a digital form of currency that allows for secure and safe exchanges. Crypto transactions are public, irreversible, mostly unhackable, adding to the hype and potential of the offer and giving the power back to those involved. 

Digital currencies bring about the freedom of bank-free transactions, allowing for quick and effortless actions. Cryptocurrency came onto the scene when people such as Satoshi Nakamoto thought it was time to improve and repair the problems of the traditional banking system.

Cryptocurrencies all adhere to specific requirements that classify the digital coin as a crypto option. This new-age financial option exists entirely online and does not have any physical substance, making it an intangible asset. 

All cryptocurrencies stay on track by ensuring that the financial options live up to the basic five properties of money: durability, portability, divisibility, uniformity, limited supply, and acceptability. The last traits are the three functions, which give money value. These include the ability to store value, unit of account, meaning there are units to measure its value, e.g., Dollars and cents, and lastly, it’s a medium of exchange.

Investment Vs. Gambling

Cryptocurrency comes with a wide range of possibilities, and from fun to finances, this new way of working has added dimensions to the world of wealth. The two biggest crazes in the crypto community are investments, which including mining, trading and simply purchasing to keep, and gambling. Let’s take a look at what both gambling and investing mean and how these two go hand in hand with the craze of cryptocurrency.

Investment

Investments refer to the action of placing money with the expectation of healthy growth in profits or returns. To invest means the investor will own an asset or item with the objective of increasing value to generate income.

Gambling

Gambling is a more entertaining form of financial gain and refers to wagering money or a valuable item on an event or outcome without the certainty of profit. The main goal of gambling is to win money or material goods. 

Looking at the two explanations, it is clear that purchasing crypto is an investment, but deciding what to do with it is what defines the action of investment or gambling. Cryptocurrency brings about a large number of possibilities, and with the advancement of opportunities, people financial freedom just got that much more extensive. 

What Should Your Next Move Be?

With the cryptocurrency scene constantly growing and evolving, who knows what there still is to come, and although one can never be certain about the right financial move, do yourself a favor and do some research into your options. Also, please make sure you are aware of your financial means and what you are looking to get out of it. 

Once you have made the decision to invest in cryptocurrency, the options continue. However, you will need to do further research to find out which is the best fit for you! To help you get on track, here is a list of the top 5 cryptocurrencies to invest in this year! 

Crypto And Beyond!

Cryptocurrency has been a hot topic for quite some time, and with the constant growth, it is clear that the only way is up from here. With many jumping on board and investing, the value of the new digital financial world is growing rapidly, and with the growth come many options. So be sure to jump on the bandwagon and state your claim of a promising financial future. Make your pick on which crypto suits you best, and change the way you see financial freedom. 

 

Last updated by Jen Van Lier on June 17, 2021

About the editor

As website manager, Jen contributes reviews and updates to The Bitcoin Strip on a daily basis. Jen worked in the casino industry for 9 years before focusing on Bitcoin in 2016. She writes on subjects ranging from traditional slots all the way through to unique Bitcoin games, provable fairness and Ethereum smart contract gambling.

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