Before investing in bitcoin and sports betting with bitcoin, the clear differences between the two must be established. Investing in bitcoin may be something that sparks your interest while betting with bitcoin does not. So, what is the difference?
General Difference Between Investing is Similar to Betting
Before exploring the differences, it is imperative to understand the similarities. Both are putting currency behind a thought, impulse or intuition under the idea that it will bring back a greater return. Both are risky propositions, but both can lead to capital if used properly.
The difference between betting and investing is quite simple really. When investing, you own the bitcoin. It is yours. You have the decision of when to cash it out. You can hold onto it forever, you can sell it at its first peak and turn a profit, you can ride the waves, it is your decision.
In betting, the outcome either happens or it doesn’t. There is a defined period of time when it comes to winning a game or wager.
While you can sell bitcoin at any moment of hesitation. If Tom Brady throws a pick six to start a game, you do not have the option to be refunded at a discounted price. There also is nothing of tangible value that is owned by the placing of a wager, other than the ticket.
So, with understanding the differences between investing in bitcoin, and betting with bitcoin, is investing in bitcoin a good idea?
Is Bitcoin Investing Worth the Risk?
The answer is somewhat complicated. That is because the idea of buying in bitcoin has to be weighted by the person.
As mentioned above, it involves intuition and impulse. There is no doubt about it when investing in bitcoin, you are entering uncharted territory. Cryptocurrency is still very new to many people, and when it comes to predicting the future of its value, there is hardly enough precedent to make this decision solely on numbers.
The value in bitcoin goes up by the amount of belief that people have in bitcoin. If it becomes weighted more heavily, the value will increase, and investing is a brilliant idea. If it is looked at as a fad or becomes something that becomes less accepted, the value will obviously diminish.
On one hand, you could say that without intrinsic value, this is a fad that will lose value. On the other side, that is exactly how the dollar bill became what it is today.
Given our evolution into a more tech-savvy world, and all of the new cryptocurrency that has popped up, it seems as though this is something that is going to potentially stabilize, if not grow for the time being. In 2017, bitcoin’s value nearly doubled in value over the calendar year.
Is Bitcoin Betting Worth the Risk?
Armed with information needed to decide whether investing in bitcoin is right for you, now comes the question of betting with bitcoin and whether it is right for you.
The only risk of betting with bitcoin that overlaps with investing in bitcoin is the value. No matter how much you invest in American currency on bitcoin, if you double your investment betting on sports, and the value of bitcoin declines in half, you did not make up any ground. That is the biggest risk when it comes to betting with bitcoin.
Therefore, you should always check the value of bitcoin before deciding when to withdrawal and deposit to exchange into American currency. After understanding all of the pros and cons of sports betting with bitcoin, you can see that while it is a different venture than investing in bitcoin, they both have the same overarching philosophy. Finish with more than you started with.
If you are interested in using bitcoin for betting, check out our Bitcoin Betting Guide for even more information.
With that in mind, investing and betting with other variations of cryptocurrency may be something to keep in mind as well. There are a variety of sportsbooks that accept cryptocurrency other than just bitcoin.
These different currencies all have differing values. By investing in the right cryptocurrency at the right time, and using it to bet, and cashing out at the right time is a savvy way to magnify your cash total.
However, you have to play it right?
There comes a lot of risk in buying and selling varying cryptocurrency. A lot of research and smart timing has to be done.
Still, with the anonymity in cryptocurrency, and the quick boom that it has had in the past 12 months, this is something to continue to monitor when looking for a smart investment.
The combination of investing in a variation of cryptocurrency and using it to bet on sports is one that can result in a much bigger pay off than a typical investment or sports bet. It could happen faster too. This is why it is so intriguing to dig into this market right now.