Friday, March 13, 2020

If you invest in bitcoin, remember that you're essentially gambling

What I fail to understand is why some people fail to see that a market which fluctuates a lot is essentially gambling but kind of a slow version, like horse races or football matches.

You believe that if you buy $10k worth of bitcoin, it has the potential to sky rocket to $100k eventually, but you also take the risk knowing that it could drop to $2k after buying it... But do you know what the odds are? Unlike gambling where you the odds, bitcoin is truly a blind gamble, you can interpret signs from events but are unable to be certain.

It would be easier and more efficient to go to a casino with $10k, it's quicker. If you're very lucky you'll make $80k, (equivalent to flipping a coin and guessing right 8 times in a row).

You might think to yourself 8 times in a row, 8 times my money? That's unlikely. Think about the odds that bitcoin will double, or even triple, and then the odds that you will actually experience a market crash, it's more likely that the market will crash.

This is why I say, go to a casino, it's quicker. Bet with 50% odds, double or nothing. But then ask yourself, is $1 worth $1?


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