Should you compare crypto trading to gambling? Scientists say yes, but common sense says no.
Some economists and even finance professors assure crypto trading and gambling are the same things.
The main argument against crypto as an investment is the term of the digital asset. Allegedly it can’t be assets because of any underlying tangible or intangible object lacking in it.
“The only possible value of crypto items is that some other player might want to buy them at a higher price”, – Professor of Finance at The University of Melbourne Kevin Davis wrote.
But still, all the crypto exchanges treat their customers as investors and propose to them traditional investing instruments. In crypto, evidently.
What is crypto investment
So who is right, and should you be called an investor after buying 0.0019 BTC?
The Nasdaq came with the answer: “While some try to steer the poor away from ‘risky’ crypto investments, these markets represent a unique opportunity usually not so democratically available. Unlike traditional investing, the decentralized nature of the crypto market allows investors of all walks of life equal opportunity to participate. The markets offer a singular chance for historically marginalized groups to grow their wealth”.
According to the University of Chicago survey, more than 1 in 10 Americans invested in cryptocurrency from 2020 to 2021. Among crypto traders, 41% are women, and 35% have incomes below $60,000 a year.
Besides “prejudice, classism, and economic bigotry,” some experts also deal with the crypto gambling/investing problem in the way of perception investing itself.
“The main difference between gambling and investing is that the investor will use diversification tools to reduce risk and reduce the chance of loss. The player typically goes all-in with the only leverage that determines whether he wins or loses”, – USA Today columnist Peter Dunn wrote.
By this definition, even wealthy investors could gamble with their stocks taking unjustified decisions. So the choice of whether invest or gamble with crypto depends only on you.
Sources: Nasdaq, Financial Review, USA Today