Is Buying Bitcoin Gambling? And Why I Would Strongly Advise Against This

Bitcoin is often associated with gambling and online casinos. This is because Bitcoin can be used to gamble online anonymously. However, this does not mean that buying Bitcoin is gambling. In fact, there are many reasons why you should not buy Bitcoin if you are looking to put your money into a safer bet.

First of all, the price of Bitcoin is highly volatile and speculative, and it is not backed by any fundamentals, like Blue Chip stocks or index funds are. This means that the price of Bitcoin could drop to zero at any time, and you would lose all of your investment, or at the very least, a large part of it as it is extremely volatile.

Another reason not to buy Bitcoin is that there are very few things you can actually do with it. You can’t use it to buy goods or services, because very few businesses accept it as a form of payment. Add to this the fact the Crypto Exchanges like Coinbase charge you literally an arm and a leg for purchasing the currencies, as high as 8% for transaction.

Is Bitcoin A Speculative Investment?

Yes, Bitcoin is a speculative investment and you should not invest more money than you can afford to lose. The price of Bitcoin is extremely volatile and could drop to zero at any time. You could Is Buying Bitcoin Gambling?lose all of your investment or a large part of it. Crypto Exchanges like Coinbase charge high fees for purchasing Bitcoin and other cryptocurrencies. You should definitely invest more conservatively than this and should only allocate a very small portion of your portfolio into Bitcoin or Crypto Currencies if you do want to add Crypto intelligently to a stock portfolio.

Why I Will Always Use The Grayscale Bitcoin Trust Over Crypto Exchanges

I recently closed my Coinbase account. It wasn’t an easy decision, as I had been using Coinbase for over two years and had become accustomed to its user interface and ease of use. However, after doing some research on cryptocurrency exchanges, I realized that Coinbase was charging me exorbitant fees compared to other exchanges. In addition, when you use Crypto Currency exchanges rather than purchasing Crypto via an ETF on the New York Stock Exchange that is SEC regulated, it is much easier to lose the money or lose access to your account, and you become much more of a target for IRS scrutiny when you go to report Crypto Currency Capital Gains.

Why I Would Only Make Bitcoin A Maximum 10% Of Your Investment Portfolio

Bitcoin and other digital currencies have been on a tear this year, with Bitcoin up nearly 400% in 2020. While I believe that Bitcoin has a place in a well-diversified investment portfolio, I would not recommend making it more than 10% of your overall portfolio. Here’s why:

1) Volatility – While the Coin can definitely have its advantages in terms of returns, it is no doubt very risky, and without being backed by any fundamentals, it is not necessarily the most prudent investment for a large portion of your portfolio.

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2) Lack of regulation – Because digital currencies are not regulated by any governing body, there is a higher risk of fraud and manipulation.

3) Lack of insurance – If you were to invest in Bitcoin and something happened to the exchange where you stored it, there is no guarantee that you would be able to get your money back.

Add up all of these factors, and what you have is a risky, risky asset. One that could be the next big thing, and that could very well be the “12th sector of the economy,” much like Kevin O’Leary thinks it will be, something that could 15 to 30x your capital in an 8 year period, or something that could catastrophically turn for the worse.

My opinion is that you should put 5-10% of your capital in it and ride it up for the wave in 2030, but that you do so via regulated exchanges.

Final Thoughts On Is Buying Bitcoin Gambling? Yes It Absolutely Is

Bitcoin is definitely gambling, and I think in some ways it might be a gamble worth taking with regards to just how much money has been flowing into the Crypto Currency. Just the simple fact that major institutions are now starting to funnel money into Crypto Currency tells me that this has some decent long term prospects. I want it on record as I am writing this blog post that I think we will see Bitcoin hit a $500,000 to $1,000,000 valuation by the year 2030, I’ll have at least $50,000 in my portfolio in contributions over the next several years in order to capitalize on this. Some part of me suggests you do the same. For more details and information on all things Finance, read on or subscribe to our blog for additional details and information.






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