CRYPTOCURRENCY TRADING VERSUS GAMBLING
The interest and increase in cryptocurrency trading is fast reaching fever pitch and so is concerns about its negative effect on some consumers.
Cryptocurrency is the alternative way of making payments, where money can be sent directly to others without it passing through the banking system. Crypto trading has been touted as the future of finance; but it has also garnered some skepticism and concerns along the way.
It has been reported that crypto trading has seen an increase in those experiencing harm, especially those embarking on high-risk investing on a daily basis, and this trend mirrors the problems experienced by those suffering from gambling related harms.
With some pro responsible gambling organizations calling for more restrictions on its activities, we look at some of the similarities between gambling and crypto currency trading. In comparing both platforms, it’s easy to notice where they meet; the same way people hear about gaming jackpot winners and increase their game play because they believe that gambling is a get rich quick channel, that is the same way an investor sees success stories on trading platforms, and wrongfully think that they can quickly get rich through trading crypto currencies.
They both have “risk” as a common denominator; players stake/bet money to become richer; investors’ trade currency on a trading platform, to become richer. The player can lose his bets/stake and the investor can make a wrong trade. All are proving to have the same addictive tendencies.
GamCare, a gambling harm minimization charity in the UK, has called for the introduction of a self-exclusion scheme, targeting those involved in what is considered high-risk crypto currency trading. In addition to this guideline, the charity equally seeks the implementation of tools and strategies designed to identify and protect customers vulnerable to trading harms by crypto trading and investment platforms.
GamBan has also decided to extend its blocking software, previously utilized as part of the “TalkBanStop” responsible gambling campaign, to crypto trading platforms.
According to the GamBan CEO, “Many of these products; CFD’s, Binary options, Crypto, etc. share a lot in common with gambling platforms (which makes them quasi-gambling products); where there is no barrier to entry and over trading is advertised and encouraged.
All in all, despite the similarities, it has been argued that crypto currency trading has more advantages than gambling, as it provides investors more opportunities for becoming wealthy. However, whether you are investing on a trading platform or betting/staking on a gambling platform, always exercise caution and play/trade responsibly and positively.