Why do people compare betting and investing in bitcoin (in terms of risk)? - page 4.

Kakmakr

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People say this because they are ignorant and uninformed. Bitcoin is only a gamble for people who cannot manage the risk in their portfolio. Any person can, with a little bit of research, make good buying decisions and then they can sell at a profit during the year.

There are lots of situations where an informed trader can make small profits during the year, but many people are too lazy to use Google and to study price patterns and to study the market behavior, so they simply label it as a high risk gamble. Roll Eyes

A lot of my friends are not experienced traders, but they have made very good profits, by just putting a little bit of effort into watching the market and then making informed decisions. Wink

tabas

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You should have asked your sibling why he thinks bitcoin is a betting so that you will have an idea why his perspective is like that. The guy probably have heard it somewhere on the web that bitcoin is like that and he don't really understand the whole point of it.

20kevin20

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Quote from: AniviaBtc on February 26, 2020, 10:29:12 AM

But still they are both risky, the only good thing in investment is that your money will not be suddenly disappear or become lost. Investment is a step by step and you need patience here in order for you to earn a profit and become successful, while in gambling, here you need is a courage and self-control just to manage your money. Gambling can really boost your mood that results into greediness that most of the people are experiencing and it is a bad thing. Most of the gamblers are greedy that's why their money are easy to lose. That's why people choose to invest their money than gamble, investment just really need hardwork, patience, and monitoring your money so you will also prevent disappointments and losses.

You have to be greedy to win in gambling. Trust me, I've tried both playing with $100 per bet and going for automated bets starting with $0.001. The results were that in the first try my $100 was lost in half a second, while my second try ended after hours of automated bets with the same result: a $100 loss.

If you want to earn something through gambling and you think you don't need to be greedy to win, then you're lying to yourself. At one point, you're going to have to risk a larger amount to leave the casino with a positive balance. Otherwise, you'll stop right there and come the next day with more money which is actually even worse.

And one more thing: I think +90% of the gamblers play with the money they need on the short term. I haven't heard yet of people gambling the money they've saved for retirement. Investing is like a safety plan for the future, for retirement, while gambling is mostly a "hey, if I win I'll buy myself a..." kind of plan.

Any way of earning some decent amounts of money requires risks. If you can't assume that and want a risk-free income, then just get a simple grocery store job and that's it. Risk-free.

Kuffy

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It's the outside influences that create the gambling aspect. Let us consider dog racing. You may be a great statistician, and extremely knowledgeable about the form of the dogs, but all that can go out of the window with a simple act. If the dog handler squeezes the reproductive tackle of the dog as it is placed in the trap, then it starts cross legged, and it may recover quickly, but it probably won't be in time to win the race. Unfortunately Bitcoin is also susceptible to the squeezing of various parts, and, unless you are in the know, it is hard to predict this.

AniviaBtc

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Quote from: angrybirdy on February 26, 2020, 06:21:30 AM

Quote from: 20kevin20 on February 26, 2020, 05:40:46 AM

Quote from: Chris Barth on February 26, 2020, 05:16:30 AM

Like, the answer is obvious. Tell me, when your 10,000$ turns to 1,000$ and when your 10,000$ got lost in a 3 minutes betting, which is preferable? See, try to get my point. You can risk 10,000$ buying bitcoin but you can stake 10,000$ on a bet (considering you could lose it all in a few seconds or minutes).

The thing is, by betting $10k if you lose, it's gone. Forever, unless you keep depositing and playing with the hope of winning.

Investing the same amount in BTC can turn your $10k into $1k but you'll still have the same amount of BTC in your wallet and the investment will still be worth something at any point.

If after you've lost $10k through betting you wait an year, the $10k will still be lost forever. The investment, however, could turn from a loss into a profit after the same timeframe passed.

This explains it all.
Betting and investing have their own different risk, if you bet your money and lost, all you bet was gone forever. No return and no exchange, it is lost already.
If you invest, even if your investment will drop its price, the number of coins you invested is still the same, but you still have the chance to increase the value of the investment in the long run.

But still they are both risky, the only good thing in investment is that your money will not be suddenly disappear or become lost. Investment is a step by step and you need patience here in order for you to earn a profit and become successful, while in gambling, here you need is a courage and self-control just to manage your money. Gambling can really boost your mood that results into greediness that most of the people are experiencing and it is a bad thing. Most of the gamblers are greedy that's why their money are easy to lose. That's why people choose to invest their money than gamble, investment just really need hardwork, patience, and monitoring your money so you will also prevent disappointments and losses.

Chris Barth

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Going through the above comments, I noticed several comments saying that investing becomes gambling when you don't have an idea. Let me explain this too. If anyone (with or without experience) buys bitcoin of $10k, he doesn't lose all the money. It's not about being smart. The worst thing that can happen to a newbie who buys $10k worth of bitcoin is that the worth could drop but then, he cannot lose all. So, whether you know how to invest or not, buying $10k worth of bitcoin, you cannot lose all of that. After all, the price doesn't increase based on who bought it.

White Christmas

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Quote from: ethereumhunter on February 26, 2020, 09:36:03 AM

If people can invest with wise, I don't think that they are doing gambling. We might gambling if we don't have knowledge about investing in bitcoin so we can buy and sell at any price without analyzing the bitcoin movements. But as long as we can analyze from the market and we can try to buy low and sell high, I guess that is not the same as gambling. But betting and investing are not the same, and that will depend on how people will treat both betting and investing.

Investing is like gambling your money bro, because there is no assurance that the money you have been invested will come back again to you. but if you have knowledge about investing on cryptocurrency then probably you will be having a chance to get back again what your money has invest but if you don't have any knowledge about invest in cryptocurrency and you are panic on selling your coins or tokens when their prices are dropping that probably you will just have or experienced losses investing and betting are just almost the same.

ethereumhunter

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If people can invest with wise, I don't think that they are doing gambling. We might gambling if we don't have knowledge about investing in bitcoin so we can buy and sell at any price without analyzing the bitcoin movements. But as long as we can analyze from the market and we can try to buy low and sell high, I guess that is not the same as gambling. But betting and investing are not the same, and that will depend on how people will treat both betting and investing.

Zeke_23

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Quote from: Chris Barth on February 26, 2020, 02:05:14 AM

I don't really understand why people see bitcoin as betting. That's what most people believe; they have this mindset that investing in bitcoin is more like playing a bet. But is that true? Capital NO!

Because that is how they interpret about bitcoin. Common reason for that is because they just heard it to other people or through social media. Aside from it, sometimes even language barrier becomes the reason for this misunderstanding.
This misunderstanding turns out to be the reason to mislead the correct information.

avikz

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I believe there is only one difference between betting and investing - is the individual mindset! You look at the same thing from a different window and receive a different perspective on the same thing!

It also somehow depends on the risk appetite of an individual. If a person is willing to take more risk, he might not see it as a betting. But if the risk appetite is low, he might see it as a betting! It's just different sides of one coin!

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Quote from: Chris Barth on February 26, 2020, 02:05:14 AM

I don't really understand why people see bitcoin as betting. That's what most people believe; they have this mindset that investing in bitcoin is more like playing a bet. But is that true? Capital NO!
I had a conversation with two of my siblings who both know that I'm into cryptocurrency. The older one was asking how much he would earn if he invested about 1,500$ worth of bitcoin. (Tho, I gave him a good explanation that it doesn't work that way). But then, my other sibling was saying that bitcoin is more like betting. Well, I ended up proving my point and here's it:
Betting is risky and so is investing in bitcoin. However, there's a big bridge between them. When you bet, your money is highly at stake than when you invest in bitcoin. This is because when you bet and lose, YOU LOSE ALL YOU STAKED. On the other hand, YOU CAN NEVER LOSE ALL IF YOU INVEST IN BITCOIN. Bitcoin can't just fall to zero. That's impossible. Tho it may need a long growth for one to gain, it should never be compared with betting (in terms of risk).

I think they are both games of chances and both need the right knowledge. Any kind of business can be risky or feels like gambling when the right knowledge and attitude is not applied towards learning the intricacies of that investment or business.

hatshepsut93

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From a mathematical point of view, gambling means risking while having negative expected value, while investing means risking while having positive expected value. With gambling it's easy - the expected value can be precisely calculated as per the games rules, but with investing its the opposite - it's hard to calculate even the estimates, especially for a purely speculative asset like Bitcoin. So, in investing your expected value is tied to your knowledge and experience as an investor - if its low, then it's likely to be negative, and then investing is indeed like gambling, but with enough knowledge you will be making money in the long run.

Zicadis

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Well, you also need to consider the fact that very few people bet their entire bankroll in a single bet, just like few people trade their entire balance at once.

They are both risky practices. Gambling is risky simply because you are always up against the house edge, while trading is risky because few traders have any idea what they're actually doing and the market can't always be predicted.

The type of risk is definitely different, since there is no house edge per se in trading, just the fees that are associated with the practice.

As such, somebody who is good at trading will likely not fair so well while gambling and vice-versa. They are just completely different.

coolcoinz

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In a way investing is betting because you put a money bet on the price going up, but this is still different from normal gambling.
Gambling is always an all or nothing game and there are no possible ways of getting the money back without putting more money on the table. To give you an example, when you invest in BTC, you put 100 USD on the line and if the market goes down your 100 will become 90, or 80, but you will still have the coins that used to be worth 100. Those coins be woth 100 in a week or a month. You can withdraw and take a loss or keep the coins and stay in the game.
If you bet that 100 in a casino and you lose, you lose everything. There's no way to roll it back and you don't have any choices left. It's over.

dothebeats

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I see it like that since people are taking chances whenever they are putting their money on either bitcoin or any gambling game. It's literally just a matter of chance and luck after all, and no matter how deep your knowledge about trading is, your analysis won't always complement the outcome that's going to be shown on the prices and the markets. You don't control the outcome same as you can't on luck-based gambling games. There'd always be that one window that will be left open even if you're sure that you've closed them all and it could screw you over albeit limiting the risks involved.

gentlemand

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You're forgetting that many new arrivals/fresh meat decide they should go straight to Bitmex and straight to 1,000,000x leverage. And others decide they're going to make their Bitcoin fortune by putting all their money into PieceOfShitcoin and hoping it goes for it. Both of them certainly are betting and both have a strong possibility of leaving you with no money.

And where is the true word that applies? Most people are not betting and most people are not investing, they are speculating.

angrybirdy

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Quote from: 20kevin20 on February 26, 2020, 05:40:46 AM

Quote from: Chris Barth on February 26, 2020, 05:16:30 AM

Like, the answer is obvious. Tell me, when your 10,000$ turns to 1,000$ and when your 10,000$ got lost in a 3 minutes betting, which is preferable? See, try to get my point. You can risk 10,000$ buying bitcoin but you can stake 10,000$ on a bet (considering you could lose it all in a few seconds or minutes).

The thing is, by betting $10k if you lose, it's gone. Forever, unless you keep depositing and playing with the hope of winning.

Investing the same amount in BTC can turn your $10k into $1k but you'll still have the same amount of BTC in your wallet and the investment will still be worth something at any point.

If after you've lost $10k through betting you wait an year, the $10k will still be lost forever. The investment, however, could turn from a loss into a profit after the same timeframe passed.

This explains it all.
Betting and investing have their own different risk, if you bet your money and lost, all you bet was gone forever. No return and no exchange, it is lost already.
If you invest, even if your investment will drop its price, the number of coins you invested is still the same, but you still have the chance to increase the value of the investment in the long run.

Chris Barth

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Quote from: 20kevin20 on February 26, 2020, 05:40:46 AM

Quote

unless you keep depositing and playing with the hope of winning.

Which could result in the loss of hundreds of thousands of dollars...😅

Quote

Investing the same amount in BTC can turn your $10k into $1k but you'll still have the same amount of BTC in your wallet and the investment will still be worth something at any point.

If after you've lost $10k through betting you wait an year, the $10k will still be lost forever. The investment, however, could turn from a loss into a profit after the same timeframe passed.

Thanks a lot for understanding the idea behind what I'm saying. Betting is far more risky than buying bitcoin. Pretty far. Right now, I can't bet with up-to 10$ but I can invest 100 times of that in bitcoin.

20kevin20

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Quote from: Chris Barth on February 26, 2020, 05:16:30 AM

Like, the answer is obvious. Tell me, when your 10,000$ turns to 1,000$ and when your 10,000$ got lost in a 3 minutes betting, which is preferable? See, try to get my point. You can risk 10,000$ buying bitcoin but you can stake 10,000$ on a bet (considering you could lose it all in a few seconds or minutes).

The thing is, by betting $10k if you lose, it's gone. Forever, unless you keep depositing and playing with the hope of winning.

Investing the same amount in BTC can turn your $10k into $1k but you'll still have the same amount of BTC in your wallet and the investment will still be worth something at any point.

If after you've lost $10k through betting you wait an year, the $10k will still be lost forever. The investment, however, could turn from a loss into a profit after the same timeframe passed.

Chris Barth

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Quote from: Farma on February 26, 2020, 03:47:41 AM

what they talk about is the price. why they sometimes say that bitcoin is a big risk investment because the price can make you lose, even worse than betting.
imagine, when you hold back $ 10,000, and suddenly you see the price is only $ 1000, it makes you feel a big loss because you're not ready. It's different from betting, you won't be surprised by the results, because you're ready. although this is different but has the same thing. if you make a move without any information, you can say that you only bet on the bitcoin investment.

Like, the answer is obvious. Tell me, when your 10,000$ turns to 1,000$ and when your 10,000$ got lost in a 3 minutes betting, which is preferable? See, try to get my point. You can risk 10,000$ buying bitcoin but you can stake 10,000$ on a bet (considering you could lose it all in a few seconds or minutes).

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