With recent calls to class cryptocurrency investing as a form of gambling, this is a good moment to consider whether cryptos and casino games have anything in common. To do this, we need to consider what the different factors are that determine whether you’re successful in each of these different ways.

Roulette Table and Roulette Wheel in a C” (CC BY 2.0) by verchmarco

Games of Chance in Casinos

There are many different types of online casino games, from slots to roulette and baccarat, but what they all have in common is the element of a random outcome. These games have traditionally relied on being based on chance rather than skill and that remains the case today, with random number generators used to ensure that the outcome is always unpredictable.

You can see how this works by using some of the best casino sign up offers to try games. For example, a welcome offer for new players with 50 free spins on a slot game gives you plenty of chances to spin the reels and see that you don’t make any decisions to affect the results. This and other offers let you get started with a bonus but they don´t make any difference to your chances of getting the right symbols, cards, or any other sort of favorable outcome.

Cryptos Are Volatile But Depend on Many Factors

The volatility of cryptocurrencies is one of the main reasons why it’s considered similar to gambling. When you buy some tokens, you can’t be certain whether the investment will grow in the way that Bitcoin’s value has rocketed since launch or will have a more modest return. In some cases, tokens have lost a huge amount of money for investors as their value has dropped significantly over time.

Yet, unlike casino games, this isn’t a question of chance and random outcomes. The fluctuating values of the different cryptocurrencies such as Bitcoin depend upon a range of factors such as market demand, rival tokens being launched, technical changes such as forks, and the latest news stories. There’s no algorithm at the heart of digital money that randomly determines their prices.

Sources: Pixabay

It’s easy to see why people often make the comparison between cryptos and gambling, with the British authorities the latest to suggest that investing in tokens should be handled in the same way as gambling. Yet, the success of either activity comes down to completely different factors.

Anyone who gambles on games of chance like slots and roulette does so in the knowledge that they’re taking part in a type of entertainment where they simply depend upon a random result to determine if they win. On the other hand, investing in cryptocurrencies requires patience and an ability to understand the market forces that affect the prices.

Perhaps the key issue here is that potential crypto investors need to be made aware of the way that the market works before getting started. Once they realize that the fate of their investment comes down to factors that they can research and try to predict, it will become clearer that the comparisons with gambling aren’t relevant.