Bitcoin, even at the best of times, involves a level of undeniable risk to deal in. This isn't just applicable to Bitcoin, to all cryptocurrency or digital currencies currently in popular use like Ethereum and Litecoin. As it currently stands, the price of Bitcoin is around $15,338 – but the reality is that this value is far from stable. Just at the beginning of 2017, one Bitcoin was equivalent to just under $1000. 2013 also saw a huge surge in Bitcoin values, when the price of just one unit went up by 85x, only to have this value crash the following year.
The bottom-line is, buying crytocurrency comes with substantial uncertainty. Dealing with cryptocurrency on the regular is an even more volatile business. As the Bank of Canada Governor, Stephen Poloz, claimed at the end of 2017 – buying Bitcoin can be ‘closer to gambling than investing', and it means ‘buying risk'. But is buying Bitcoin really like gambling? And what does it mean for cryptocurrency casinos?
The Risks of Bitcoin
The BoC Governor chose the rise of Bitcoin as his subject for his end of year speech. In this speech, he raised concerns regarding Bitcoin's popularity and warned against the destablising effect that cryptocurrency has on financial markets. When asked to comment about cryptocurrency in general, Poloz stated that:
“What their true value is may be anyone's guess — perhaps the most one can says is that buying these things means buying risk, which makes it closer to gambling than investing.”
Poloz's comments come just one day after the U.S Federal Reserve Board Chairwoman, Janet Yellen, labeled Bitcoin as a ‘highly speculative asset' that ‘doesn't constitute a legal tender.' This once again speaks to the mercurial nature of the digital currency.
That said, Poloz also admitted to the growing use of electronic payments across Canada. Currently, the bank is undergoing discussions about the feasibility of developing its own digital currency for retail transactions. However, this discussion is not even in its preliminary stages. As of yet, the future of cryptocurrency remains as difficult to predict as ever. This lack of stability, due to the fact that cryptocurrency is largely controlled by the individual consumer, is exactly what makes it so risky.
And, just like in gambling, you should never risk more than you're prepared to lose. I.e. don't stake your mortgage on it.
Is it Gambling?
Despite the inherent volatile nature of cryptocurrency, it's ultimately not something based on luck – like spinning on a slot is, or rolling some dice. Blockchains come with a certain level of security, and as long as you take care to back everything up, you're unlikely to just ‘lose' money by actually misplacing it.
The real challenge is to do your research, and make wise choices. Don't buy more than you can afford to lose, don't jump the gun and sell too early. If you keep up with charts and statistics, you should be able to make an educated guess about your next move.
As for cryptocurrency casinos, our recommended ones all either directly accept Bitcoin or they use a medium that deals with cryptocurrency. Whereas you might find that certain credit cards might block transactions with casinos, you're unlikely to run into this problem with cryptocurrency. It is still a secure alternative, and also more private in terms of the transfer of personal information needed. Always make sure that these casinos have a valid license from either the MGA, UKGC or Curacao. If so, then they're legitimate and you're free to make the transactions you want.
