When gambling has better odds than holding your local currency

[yhiaali3]

I don't believe gambling can be a means of survival or a "potential hedge against the loss of purchasing power." This makes no sense to me even in countries experiencing high inflation.

Gambling cannot be considered an investment or a hedge because it relies on luck and while you may win once, you may lose many times. Therefore, you may end up losing all of your money due to gambling, instead of preserving the value of your money against inflation.
The best way to hedge against inflation is to buy Bitcoin or gold.

[stadus]

I am from Venezuela and I have people close to me living in Argentina.
Here in Venezuela, during the worst days of inflation, we see a very high increase of gambling in the whole nation, it was common to see people of all ages playing a game called "Animalitos" or "little animals" which is a roulette-like game, animals were selected randomly and according to the animal one gambled on, then one  can receive money according to one's selection.
It was quite a big phenomenon between the years 2015 and 2018, but it started to decrease after 2018 today one could still to see those betting places in the country, but it is not as popular as it used to be, when even children played with those little animals.

So this is really happening in the country (thanks for the conformation), some people would rather gamble just to fight inflation. it's a risky move, but it can be rewarding if they win. still, it's hard to judge if it's right or wrong because we're not in their shoes. when people are desperate, they'll do whatever it takes, even things that seem unusual to others.

Hope you're doing okay there, brother.

To face inflation, for now people prefer to swap our local currency for dollars, USDT, Euros, or gold.

But what about those people who are barely making enough to survive? Would converting to USDT (or other stablecoins) still be a good option for them?

[Wind_FURY]

I'm pretty sure most of you know how inflation affects a country and its people, but imagine if it reaches the level of hyperinflation. Take Venezuela for example, which got hit hard by hyperinflation with over 200% yearly inflation, making it one of the countries with the highest rates globally.

Normally, we gamble just for fun, but in a place like that, gambling might actually be a way of survival. The odds of turning a small amount into something bigger could seem more appealing compared to just holding onto their money while its value keeps dropping every day.

In a way, while it goes against the usual belief that gambling isn’t an investment, in countries with hyperinflation, it might look like a potential hedge against losing purchasing power.

So I’m curious, do we have anyone here from such countries, like Venezuela or Argentina? How do you see this possibility? Would you consider gambling an escape from inflation, or does it only make the situation worse in the long run?

But what do you actually mean by "gambling" in this instance? It's laughable. Instead of gambling with your hyperinflated currency, merely buy food and your family's needs while you can before it hyperinflates again.

But if you're making a debate that gambling is your way to fight inflation - LAUGHABLE. Your only hedge is to invest/save the money in store of value assets like Bitcoin or Gold. Gambling the money in a casino game will not give you hedge against inflation.

     

[KTChampions]

But what do you actually mean by "gambling" in this instance? It's laughable. Instead of gambling with your hyperinflated currency, merely buy food and your family's needs while you can before it hyperinflates again.

But if you're making a debate that gambling is your way to fight inflation - LAUGHABLE. Your only hedge is to invest/save the money in store of value assets like Bitcoin or Gold. Gambling the money in a casino game will not give you hedge against inflation.

     

I think it is obvious that he meant some kind of gambling where the player is successful (it does not matter whether it is real or not). I hope you do not laugh at those people who do business in conditions of hyperinflation? After all, despite the fact that most of their capital is in assets (machines or store space, etc. I do not know), but they also try to do business against hyperinflation, which is essentially an unprofitable strategy. At some point, you still have to decide how to get rid of money that is becoming cheaper in order to somehow preserve the value you have earned.

[Dunamisx]

Had it been its an investment now, I would have supported for it and advise more, such could be for trading or investing to hold, while when it comes to gambling, the risk to lose is very high than to win, so I wouldn't advise anyone to go for such, it's better to invest your money or hold onto it than using it to gamble, except we are ready to afford losing it in case things turn out up side down.

[Ivystar5]

So I’m curious, do we have anyone here from such countries, like Venezuela or Argentina? How do you see this possibility? Would you consider gambling an escape from inflation, or does it only make the situation worse in the long run?

I'm not anyway close to people from there but with basic knowledge, of course it makes the situation worse, the country isn't going to battle only poverty from economic crisis or improper allocation however they are going to suffer addiction for the everyday citizens because definitely gambling is the most reliable way to beat the economic situation at this point, if you can risk 1 VES which is around 0.01 USD to get back in return 10 USD if you're lucky then, it's going to be a gold rush in my opinion because whether you spend the few cent or not it will still get derained from your pocket by inflation.

[Wind_FURY]

But what do you actually mean by "gambling" in this instance? It's laughable. Instead of gambling with your hyperinflated currency, merely buy food and your family's needs while you can before it hyperinflates again.

But if you're making a debate that gambling is your way to fight inflation - LAUGHABLE. Your only hedge is to invest/save the money in store of value assets like Bitcoin or Gold. Gambling the money in a casino game will not give you hedge against inflation.

     

I think it is obvious that he meant some kind of gambling where the player is successful (it does not matter whether it is real or not). I hope you do not laugh at those people who do business in conditions of hyperinflation? After all, despite the fact that most of their capital is in assets (machines or store space, etc. I do not know), but they also try to do business against hyperinflation, which is essentially an unprofitable strategy. At some point, you still have to decide how to get rid of money that is becoming cheaper in order to somehow preserve the value you have earned.

Ser, that still DOESN'T make gambling a inflation hedge that plebs or ANYONE should consider. It's very laughable that you're defending that.

If your country's currency in a state of hyperinflation that would mean that an individual should immediately buy what he needs before the currency loses value again because the prices of items could surge again before you could spend your money.

[mikel_012]

Ser, that still DOESN'T make gambling a inflation hedge that plebs or ANYONE should consider. It's very laughable that you're defending that.

If your country's currency in a state of hyperinflation that would mean that an individual should immediately buy what he needs before the currency loses value again because the prices of items could surge again before you could spend your money.

Or hold a stronger currency. One of the benefits of crypto is the easy to hold USD stable coins like USDC without needing to have a government permit and using fintechs that charge high fees. In Brazil we can save up to 5% when buying USDT instead of buying USD on a banking app or with credit card. I believe in countries with worse currencies and more capital control, it's even more expensive and also harder to do that.

And if you can gamble, you are probably doing this with crypto and can have access to stable coins. No need to gamble just to risk your money because this is like chasing your own tail, you will eventually lose and have -100% instead of a inflation of 30%.

[fredericktaylor]

I don't believe gambling can be a means of survival or a "potential hedge against the loss of purchasing power." This makes no sense to me even in countries experiencing high inflation.

Gambling cannot be considered an investment or a hedge because it relies on luck and while you may win once, you may lose many times. Therefore, you may end up losing all of your money due to gambling, instead of preserving the value of your money against inflation.
The best way to hedge against inflation is to buy Bitcoin or gold.

Right, Gambling can never be the main goal of making money, gambling is mainly for entertainment, it cannot be an investment or the main purpose of making money. From my point of view, it is never possible to avoid inflation through gambling, for this, long-term investment is needed. We say that gambling should be played with money that we can lose. In gambling, there is a possibility of losing money, so it is not possible to fight against inflation. We do not know about the future, we cannot say for sure that our money will increase through gambling. I think investing in Bitcoin is very important to avoid inflation.

[yhiaali3]

Or hold a stronger currency. One of the benefits of crypto is the easy to hold USD stable coins like USDC without needing to have a government permit and using fintechs that charge high fees. In Brazil we can save up to 5% when buying USDT instead of buying USD on a banking app or with credit card. I believe in countries with worse currencies and more capital control, it's even more expensive and also harder to do that.

Sorry, but I don't quite understand how you can "save up to 5% when you buy USDT instead of buying US dollars via a banking app or with a credit card." Can you explain?

While I don't recommend buying centralized stablecoins, whether USDC or USDT, instead of dollars, because in my opinion they aren't that different from the dollar, these stablecoins are centralized and will also inflate with the dollar's inflation. Therefore, I still believe that Bitcoin or gold are the best way to hedge against inflation.

[CryptoYar]

In that country where money loses value by day usual ways of saving become useless. Gambling with its promise of big quick win might seem like desperate but logical way to get ahead of falling currency even though it is huge risk. However while it might offer temporary feeling of hope gambling is far more likely to make bad situation worse in long run. Hearing from people those have experienced this firsthand would be crucial to understanding how this difficult and stressful situation truly affects people decisions.

[Free Market Capitalist]

What the title says is simply false. No matter how high inflation is, risking losing everything is not going to have very good odds in comparison. It also fails to take into account that you can invest that money in assets that beat inflation instead of risking losing everything. It is based on a false dichotomy.

But what do you actually mean by "gambling" in this instance? It's laughable. Instead of gambling with your hyperinflated currency, merely buy food and your family's needs while you can before it hyperinflates again.

But if you're making a debate that gambling is your way to fight inflation - LAUGHABLE. Your only hedge is to invest/save the money in store of value assets like Bitcoin or Gold. Gambling the money in a casino game will not give you hedge against inflation.

     

I think it is obvious that he meant some kind of gambling where the player is successful (it does not matter whether it is real or not). I hope you do not laugh at those people who do business in conditions of hyperinflation? After all, despite the fact that most of their capital is in assets (machines or store space, etc. I do not know), but they also try to do business against hyperinflation, which is essentially an unprofitable strategy. At some point, you still have to decide how to get rid of money that is becoming cheaper in order to somehow preserve the value you have earned.

Ser, that still DOESN'T make gambling a inflation hedge that plebs or ANYONE should consider. It's very laughable that you're defending that.

If your country's currency in a state of hyperinflation that would mean that an individual should immediately buy what he needs before the currency loses value again because the prices of items could surge again before you could spend your money.

I also think it's laughable. I could understand it if we were talking about someone who is a successful sports bettor or poker player, but the OP talks about “gambling” without distinguishing between the two. Plus, it would have to be in crypto currency because if inflation is very high and you bet in your fiat currency, you probably won't beat it or only by a little. But if you're going to bet in crypto (bitcoin or some stablecoins), you'll have less risk if you just buy and don't bet.

[viljy]

I'm pretty sure most of you know how inflation affects a country and its people, but imagine if it reaches the level of hyperinflation. Take Venezuela for example, which got hit hard by hyperinflation with over 200% yearly inflation, making it one of the countries with the highest rates globally.

Normally, we gamble just for fun, but in a place like that, gambling might actually be a way of survival. The odds of turning a small amount into something bigger could seem more appealing compared to just holding onto their money while its value keeps dropping every day.

In a way, while it goes against the usual belief that gambling isn’t an investment, in countries with hyperinflation, it might look like a potential hedge against losing purchasing power.

So I’m curious, do we have anyone here from such countries, like Venezuela or Argentina? How do you see this possibility? Would you consider gambling an escape from inflation, or does it only make the situation worse in the long run?

I strongly doubt that gambling can be used as a method of saving your money from inflation... Investments in reliable assets, such as investments in gold, are usually used for this purpose. In general, gambling is a separate entertainment industry, and not a way to combat inflation. If you invest your money in the casino business, then it can be considered a profitable investment.

[mikel_012]

Or hold a stronger currency. One of the benefits of crypto is the easy to hold USD stable coins like USDC without needing to have a government permit and using fintechs that charge high fees. In Brazil we can save up to 5% when buying USDT instead of buying USD on a banking app or with credit card. I believe in countries with worse currencies and more capital control, it's even more expensive and also harder to do that.

Sorry, but I don't quite understand how you can "save up to 5% when you buy USDT instead of buying US dollars via a banking app or with a credit card." Can you explain?

While I don't recommend buying centralized stablecoins, whether USDC or USDT, instead of dollars, because in my opinion they aren't that different from the dollar, these stablecoins are centralized and will also inflate with the dollar's inflation. Therefore, I still believe that Bitcoin or gold are the best way to hedge against inflation.

I already said in my post. Fintechs charge high fees here in Brazil because there are heavy taxes to pay when converting the local currency Brazilian Real to USD because of capital controls.

You save 5% when buying USDT because you don't have to pay the fees that the banking apps pay if you do this way, so it's a lot cheaper.

[Dr.Bitcoin_Strange]

In my country there is also strong inflation, prices are rising every day, salaries are not keeping up with the growth of prices. I can not say that gambling is capable of acting as a protection against losses or as an investment, since the rates are also growing in monetary terms, and it turns out that you come out to approximately the same level, the best opportunity to maintain your standard of living is investing in electronic or foreign currency, since real estate and doing business are now too risky in our country with the current laws and domestic situation.

Exactly how inflation is affecting my country too but I will never use gambling as a back up and I can not advice anyone to do so, it's better to invest into Bitcoin and hold for the long duration of time that it will take Bitcoin to enter a bull season. With Bitcoin investment, the person will not lose their money but just have to be patient, not gambling where they can lose their money on the process of seeking for more.

[programmer3666]

I'm pretty sure most of you know how inflation affects a country and its people, but imagine if it reaches the level of hyperinflation. Take Venezuela for example, which got hit hard by hyperinflation with over 200% yearly inflation, making it one of the countries with the highest rates globally.

Normally, we gamble just for fun, but in a place like that, gambling might actually be a way of survival. The odds of turning a small amount into something bigger could seem more appealing compared to just holding onto their money while its value keeps dropping every day.

In a way, while it goes against the usual belief that gambling isn’t an investment, in countries with hyperinflation, it might look like a potential hedge against losing purchasing power.

So I’m curious, do we have anyone here from such countries, like Venezuela or Argentina? How do you see this possibility? Would you consider gambling an escape from inflation, or does it only make the situation worse in the long run?

Yo bruh, when money is losing value like that daily!  folks really hav to do what they gotta do to survive. Even if that means throwing a Lil sum on gambling, hoping & praying to the Lord of the Gambling industry that it flips into profit, who is going to blame them!!!! It’s more like why hold paper that ain’t worth anything tomorrow when you might double up today......

I am not saying it’s smart for everybody, but when the streets are cold as hell !! folks will not be thinking about investments they will be thinking about sharp and instant survival.

[acroman08]

Normally, we gamble just for fun, but in a place like that, gambling might actually be a way of survival. The odds of turning a small amount into something bigger could seem more appealing compared to just holding onto their money while its value keeps dropping every day.

Or turn it into nothing, which is far worse than the "value keeps dropping every day". I saw articles and videos in the past where people in Venezuela adapted to their situation by either exchanging their local currency for dollars or asking to be paid in dollars, which is far better than risking it on gambling.

[Doan9269]

Gambling odds are a better way to enjoy playing bets and winning big, but the risk still remains the same, we may not have the chance of winning irrespective of the odds provided, as we don't win by how big or small the odds may appear, but the way we have our luck in wining a bet, so we should stake base on our affordability, don't use your asset you're holding to gamble and play bets, all because you want to maximize the odd opportunity to add more to your asset, you may just be about to lose everything if care is not taken.

[condoras]

Normally, we gamble just for fun, but in a place like that, gambling might actually be a way of survival. The odds of turning a small amount into something bigger could seem more appealing compared to just holding onto their money while its value keeps dropping every day.

Or turn it into nothing, which is far worse than the "value keeps dropping every day". I saw articles and videos in the past where people in Venezuela adapted to their situation by either exchanging their local currency for dollars or asking to be paid in dollars, which is far better than risking it on gambling.

Of course, they will adapt since it's a matter of their survival. They know that gambling isn't nearly as solid when it comes to living and surviving. I live in a Latin American country that uses two currencies. When their local currency drops, they ask to be paid in dollars, and vice versa. However, the Government demands any state-related payment (taxes, licences, etc) in their local currency, so sometimes things are tougher than they seem. That, though, doesn't stop them from gambling even $1 whenever they have it spare in their pocket. Having a chance to win "big" will always be a solution in some people's minds and nothing can prevent this.

[Cityhunter34]

In my country there is also strong inflation, prices are rising every day, salaries are not keeping up with the growth of prices. I can not say that gambling is capable of acting as a protection against losses or as an investment, since the rates are also growing in monetary terms, and it turns out that you come out to approximately the same level, the best opportunity to maintain your standard of living is investing in electronic or foreign currency, since real estate and doing business are now too risky in our country with the current laws and domestic situation.

Exactly how inflation is affecting my country too but I will never use gambling as a back up and I can not advice anyone to do so, it's better to invest into Bitcoin and hold for the long duration of time that it will take Bitcoin to enter a bull season. With Bitcoin investment, the person will not lose their money but just have to be patient, not gambling where they can lose their money on the process of seeking for more.

Normally as a good gambler that knows what gambling is all about would never in any way think of using gambling is back up because doing that would definitely lead you into more losses at the end of the day. Of course investing in Bitcoin and hold for a long period of time is far better than relying on gambling, because once you invest in Bitcoin and plan for future purposes there is a high chance of getting profits at last.