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).
The reason why some people see bitcoin as betting is that, the risk level in both bitcoin trading or investment and betting are very much equal. With betting you can't actually tell the outcome even with all the statistics. Bitcoin also has similar characteristics since you can actually tell the next possible market value. Both Bitcoin and betting share similar risk levels and their profit margins are also quite similar. But personally, betting is more risky than Bitcoin. With Betting, it is very high to lose all the money you invested in the bet.
Maybe the reason why they are comparing bitcoin as betting and investing because, in my own opinion, you are likely to be betting when you are investing, you are actually taking risks with a possibility that you will make a profit is 50%, it is either you will earn or you will lose money. But in investing, you can make your own standards in which you are choosing particular project that will make sure that you will make profit in the future by doing some study and checking out if that particular project can succeed with their platform.
This is the problem I have with some people, even some of them on this forum. When people say that they lost everything in bitcoin, I keep wondering how that is even possible. Seriously, how do you even lose all your money in bitcoin, so you were not checking the price or what? And there is no way that bitcoin price will fall all at once and fall to zero.
There is a huge difference between bitcoin and gambling. Bitcoin is a pure investment, but the thing is that the risk involved is quite high than some other investments like gold, and that’s because bitcoin is still new and volatile. As time goes on it will become more stable and better than it is right now.
In gambling, you are actually taking risks with a 50% percent chance of winning while in bitcoin investment you can somehow make sure that you can earn by choosing top coins and making your own plans that will secure your profit in the future. Although we cannot predict the price and the market's situation but we can do better plans to make it possible.
