If you’ve been keeping an eye on the cryptocurrency game as of late, you’ll have seen that Bitcoin recently hit the $40,000 mark for the first time. You’ll also have seen how it almost immediately shot back down to around the $30,000 mark and is currently hovering around $32,000 at the time of writing.
In any case, the fact that Bitcoin was selling for around $4 shortly after its creation makes numbers like this incredibly appealing. Even if massive hikes are often followed by equally accelerated falls, there’s still money to be made with savvy cryptocurrency investments.
If so, does this mean that now really is the time to take a gamble on Bitcoin?
The Growing Popularity of Bitcoin Gambling
Bitcoin investments go hand in hand with online gambling. Whichever way you look at it, buying and selling cryptocurrency is a form of gambling in its own right. You buy low, you hold onto your coins for the appropriate amount of time and you (hopefully) sell high.
Where things turn out in your favour, you make money – the same as with any online or offline casino game. If you make the wrong moves and place the wrong wagers, you lose. Again, identical to how it works with casino gaming.
Hence, it’s really no surprise that many of those who are into the whole cryptocurrency thing also love gambling in a variety of forms. But just as is the case with gambling, there are pros and cons to take into account if interested in hedging your bets on Bitcoin.
A few of which we will now be taking a look at in a little more detail.
Advantages of Bitcoin Investments
When you see crypto coins massively increasing in value over the space of a few short years, it’s hard not to be tempted by the whole thing. Indeed, there are several major advantages to giving Bitcoin investments a shot, including but not limited to the following:
- Liquidity. Bitcoin is currently ranked among the most liquid of all investment assets worldwide, which can be purchased, sold and traded instantaneously via hundreds of online trading platforms.
- Lower inflation risk. The fact that Bitcoin is not regulated by any government means that it is also immune to inflation and will not be affected by the economic or political pressures of any specific country.
- Massive potential gains. Many of those who purchased a stockpile of Bitcoins just a few years ago are now staring at the kinds of personal fortunes they’d never have otherwise accumulated.
- Open to everyone. Getting started buying and selling Bitcoin typically means forking out a minimum of just £100 or less to buy your first crypto. It’s therefore open to just about anyone who enjoys gambling.
Disadvantages of Bitcoin Investments
Of course, to suggest or assume for one moment that Bitcoin is a 100% safe investment is to make a big mistake. All forms of gambling carry their own unique risks and potential for loss – risk and reward going hand in hand with all investment opportunities.
The main disadvantages to take into account regarding Bitcoin or investments right now are as follows:
- Volatility. There have been times in the Bitcoin’s lifespan that the value of a coin has plummeted by more than 50% within a couple of weeks. Huge gains are by no means off the cards, but neither are catastrophic losses in the blink of an eye.
- Threat of regulation. If national and international authorities make the decision to clamp down on cryptocurrency, the value of the Bitcoin could technically be reduced to zero. This is a risk that applies to all forms of crypto, though is admittedly relatively low.
- Loss of wallets. A risk illustrated recently by a chap from the United Kingdom, who accidentally lost a hard drive several years ago with more than $200 million worth of Bitcoin in his wallet. All of which is now gone for good.
- Unpredictability. By far, Bitcoin is one of the most unpredictable investment assets anyone can hedge their bets on right now. Nobody knows what’s going to happen with any crypto coin within the next few weeks or months – longer-term projections are completely impossible.
Safe and Sensible Crypto Gambling
As is always the case, the key to getting things right with crypto gambling lies in adopting a safe and sensible approach. Something that means taking into account your risk appetite, how much money you can afford to put on the line and – most importantly of all – how much you can afford to lose.
The number one rule when it comes to all types of gambling (including investments to an extent) is to never bet with money you can’t afford to get by without. If you’ve an amount of disposable income lying around and fancy your chances with an interesting and exciting investment opportunity, crypto could be for you.
As could crypto gambling, wherein people take their existing Bitcoins (and other coins) and attempt to multiply them with online casino games. This is effectively a form of double gambling that ups the ante in a big way, though with greater risk comes the possibility of greater rewards.
The Future of All Currency?
Rounding things off, there’s been much talk as of late regarding the potential for crypto to eventually take over from all forms of conventional currency. Which may sound like a ludicrous concept on the surface, but isn’t as crazy as it seems when you consider the popularity of digital payments today, compared to just a couple of decades ago.
However, the likelihood of all (or even most) currencies being replaced by crypto in the foreseeable future at least is next to zero. In the meantime, Bitcoin is likely to continue its reign as one of the most volatile assets of its kind in recent history.
Something that only adds to its charm, for those with the risk appetite to cope with it.
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