There isn’t a hotter topic in the world right now than cryptocurrency. Bitcoin, Litecoin, Ethereum, Ripple, Bitcoin Cash, and more are dominating the headlines. This has led to the creation of a whole new wave of online casinos, with the likes of BitStarz, 7Bit Casino, and FortuneJack resetting the foundations of the iGaming industry. While the world is in the midst of cryptocurrency frenzy right now, it pays to look beyond the emerging crypto rich and ICO madness to address something of a sensitive subject matter.
Due to the fast cash and often volatile nature of the cryptocurrency market, there is a belief that it has created a new form of addiction. Related to the trading, investing, and gambling sides of cryptocurrency, many are arguing that cryptocurrency addiction has become a real problem.
The growing analogy between cryptocurrency trading and gambling
Cryptocurrency trading is not unlike gambling, so those that say that it’s effectively the same thing aren’t too far wrong. You see, when you purchase or trade a cryptocurrency, you’re effectively betting on it either going up or down in price. This means that you always run the risk of your investment evaporating, should things turn against your prediction.
Those that choose to trade stocks, options, or forex are dealing in markets that have been well-established across the course of generations. The cryptocurrency market is in an embryotic stage, in the sense that there are no expected market patterns, nor is there extensive regulation. This means that the market suffers from extreme volatility. Since its rise to prominence, we’ve seen coins fall and coins rise – and some even vanish – which shows that the market can have devastating consequences.
You can lose a lot of money quickly when trading cryptocurrency, almost as quickly as you can lose your money when gambling in an online casino. The difference between these two examples is that the best casinos are regulated and provides their customers responsible gambling help, whereas cryptocurrency trading is not regulated, in most cases, and leaves the trader to face the risks alone.
Wise words from the professionals
Speak to any experienced – and more importantly successful – cryptocurrency trader and you’ll discover that the idea of trading cryptos being akin to gambling is deep-rooted. It seems that even those in senior banking positions are now backing this way of thinking. On top of declaring Blockchain to be a “true piece of genius”, Stephen Poloz (Bank of Canada Governor) said, “There is no intrinsic value for something like bitcoin so it’s not really an asset one can analyze. It’s just essentially speculative or gambling.” Warren Buffet – the infamous investment tycoon – has also chimed into the argument by saying that “trading bitcoin is gambling not investing.”
Not everyone will buy into the argument that cryptocurrency trading is gambling, but most of the professionals seem to – which certainly stands for something.
The risk factors of becoming an addict
Like any addiction, cryptocurrency addiction can be destructive. The risks of cryptocurrency addiction are obviously financial to begin with – in a similar sense to gambling – as it’s possible to have any funds or savings held be reduced to nothing. This, in turn, can then impact the lives of the addicted and those around them.
Signs that you’re addicted to cryptocurrency include having your mood determined by the state of the market, fighting the urge to trade constantly across all device, and having a large amount – or possibly all – of your capital tied up in cryptocurrency. If you are showing symptoms such as these, it might be time to cool your crypto trading and seek professional help.
The dangers of cryptocurrency trading
So, why are some individuals labeling Bitcoin and other digital currencies as dangerous? The answer to this question lies in the fundamentals of what a cryptocurrency actually is. The entire idea is that a cryptocurrency is non-regulated, thus is detached from any financial governing body and banking system. This self-functioning setup has come to the forefront in times of economic instability, with Bitcoin in particular being labeled “Digital Gold” in the wake of its massive price spike.
Cryptocurrency – generally speaking – is a finite product. What this does is wreak havoc with the usual concept of supply and demand. For example, Bitcoin mining is capped to 21 million coins, with 80% of that number already in circulation, which means availability – or lack thereof – is causing wild price volatility. Remember, cryptocurrency trading it’s a case of taking the rough with the smooth – as the market can flip suddenly from one day to the next.
Cryptocurrency addiction is without question real
If you had any doubts before, you probably don’t now – as cryptocurrency addiction is certainly real. Representing the dark side of digital currency trading, it’s certainly something that should be acknowledged, even if it is a lesser-known form of addiction.
