Cryptocurrencies have made a lot of progress over the past few years and are gaining wider acceptance. More businesses are open to exchanging goods and services for cryptos, but they are very selective when it comes to which crypto they accept. Additionally, cryptocurrencies had a big impact on the gaming industry, as developers started to leverage blockchain technology. Today there are lots of play-to-earn games, where you are basically mining crypto while playing. Still, a lot of people associate crypto with gambling and here we will explore what are some of the main similarities between the two.
Relying on Latest Payment Systems
If you are not mining cryptos then you need to purchase them from an exchange website, so you will have to rely on some of the banking services. The same goes for online casinos, if you want chips for poker or spins for slots you’ll need to fund your account and exchange money for the currency requested by the game. Online casino players prefer to play on pay by boku casino sites or other platforms that allow them to use SMS for payments.This is because people don’t want their finances to be visible to anyone they choose payment methods that aren’t directly connected to their bank account.
The same applies to crypto enthusiasts as the reason they find this tech appealing is anonymity. So, once they make their initial purchase they are more likely to use their existing cryptos in exchange for others.
Uncertainty of the Investment
One of the main similarities between cryptocurrencies and gambling is uncertainty or high risk. In a way, both gamblers and crypto enthusiasts understand there is a high risk involved when they are spending money on the hobby they like. You might argue that certain currencies have a lower risk, but even bitcoin crashed recently. Of course, some other currencies are way worse, as you can end up with virtually nothing overnight. So, you should be careful when spending money on either of these.
User Action Has a Strong Impact
In order for the value of cryptocurrencies to increase more buyers need to be on board. If it’s cheap more people might get on board, but a higher price also gives the impression of better stability. This is somewhat similar to how sportsbook odds work and how they are adjusted. There is an initial value on different outcomes that are supposed to incentivize users to bet on any one of those. However, in case there is an imbalance and a big majority supports a single option the odds will be adjusted so that more people will opt into different outcomes.
Big Online Community Forums
Another thing that both crypto and gambling have in common is user forums. There are tons of enthusiasts on both sides that are happy to engage in discussion and give their educated opinion on a certain platform, currency, or specific game. This makes it easier for the new enthusiast to get up to date with the latest trends and to really get behind either of these hobbies. It’s also a good way to find out who you can trust as a new user and not get scammed.
Finally, there are malpractices and scams all over the crypto market and in the online gambling industry. For crypto, these are called pump and dump schemes, and people have lost a lot of money on those. The price of a certain currency gets inflated due to amazing and impossible to keep promises, and it only turns out someone was trying to pull off an extremely profitable exit strategy. This is one of the problems with unregulated markets, as people can do all sorts of things when there is no one who can hold them accountable.
As for the gambling industry, there are lots of regulators, but there are still platforms that operate without a license. Basically, the casino offers incredible bonuses, gets users to spend their real money, but then refuses to payout their winnings, or creates an elaborate withdrawal process that just isn’t worth the trouble.
These were some of the main similarities between gambling and trading cryptos. As you can see it’s extremely important that you use reputable and trusted websites for either of these hobbies. Moreover, you need to be careful with your spending and not view these hobbies as means to financial stability. There are lots of cautionary tales online from both gamblers and traders.
James Collins is a talented writer who specializes in blogging, academic writing, and digital marketing. He is also a big fan of the iGaming industry and a crypto enthusiast. In his free time, James enjoys playing video games like Call of Duty and watching true crime documentary TV shows.