Is Crypto “investing” just Gambling?

I like the idea of owning my own money. I think stablecoins more or less have this covered.

When people say tokenomics, it seem to mean how likely is this coin price to dump or pump:

* is it stakeable (*less sell pressure from retail investor*)
* what is the vesting period *(what is the sell pressure from VC and institutional investors*)
* what are transaction fees like (*is it high enough to prevent miners/validators from dumpin*g)
* what is the ecosystem like (*how diverse is the shitcoin range available for swapping*)
* on-chain activity (*how many people are sending the coin back and forth from wallet to exchange or swapping it for shitcoins on dapps*).

None of the tokenomics are really related to anything aside from a zero-sum evaluation of whether line go up or down. It has nothing to do with profit margins, company growth, new products.

So, its like we all put our money on certain numbers on the roulette wheel and hope to get lucky.

Edit: I think some people may make the analogy with stock market. That’s fair enough for most, but remember Apple, Microsoft, Amazon, these companies make real products, provide real services, around the world, they employ thousands of people – there are so many metrics besides lets say “stockenomics” that you can evaluate – hence my argument that crypto investing is gambling.

Edit 2 TLDR: There is no real objective measure of value for a token aside from short/long term sell/buy pressure of the naked token itself.

View Source

31 thoughts on “Is Crypto “investing” just Gambling?”

  1. Its most close to horse racing.

    You look at the field and pick the one with the name you like. Then you cheer it on and call the other coins beating your coin a piece of shit.

  2. gambling is a behavior, not an asset.

    If you are a gambling addict, you’ll manage to bet on the weather if you are motivated… does not mean that weather is a financial asset class of its own.

    Investing based on Data is possible, even if the asset-class is risky. Doesn’t make it gambling. Behavior of the Investor decides whether it is investing, gambling or throwing money away.

  3. Leverage trading is what makes it worse than gambling. When the leverage goes above 1x its no longer investing at all. And exchanges have 125x leverage and this is where it becomes far worse than gambling. And investing is buying shitcoins most the time, especially with the sheer amount of shitcoins we have today.

    Crypto is almost never investing and almost always worse than gambling.

    There are [companies]( trading on [nasdaq]( that are like your [average shitcoin]( too, with 99% drops and [shit like that]( The markets are the same to me

  4. It’s wild how many people come to the conclusion that tokens have no value other than as gambling chips.

    Look at ETH, it’s value is as a compute credit. You spend ETH to perform computations on the Ethereum Virtual Machine. There are tons of services on Ethereum, and they all require that you spend ETH to use them. To me, this more closely mimics a commodity, like gas.

    Many tokens represent voting power over how a particular protocol operates. Many protocols provide services, having a say in how those services operate is valuable. UNI is an example of this. These tokens closely mimic a stock. Some may even entitle owners to revenue generated by the protocol.

    Protocols can generate revenue. Using Uniswap as an example again, there is a fee associated with trades taking place on the platform. Rather than the revenue going to “the company”, it goes directly to the liquidity providers. Providing liquidity for use with trades is a service.

    I feel like people don’t get past buying cryptos on Coinbase and watching the value change, which is gambling. Actually using the tokens for their intended purposes is not gambling. Just because most people are too stupid to figure out how to use them does not make buying or using cryptos gambling.

  5. How do you think companies grow? By getting more money/people into their business. The same applies for any blockchain. Crypto’s a business, there are real people developing the protocols and applications, ergo it offers a lot of jobs all over the world. If I buy a car for 50k from someone who made it for 25k $, does it mean I lost money as I will never be able to sell it for 50k$ or more? It works the same with crypto. Yes, I am not able to drive with Bitcoin, but I am able to treat it as a digital monetary asset. I cannot digitally transfer my car as a monetary asset over the internet or treat it as such. Both have different utilities. Something about zero-sum evaluation makes only sense If we were really buying stuff which don’t exist (either in digital or real form) and cannot be use in any way.

    “… provide real services, around the world, they employ thousands of people… ” Just as any blockchain. If you don’t think there are values being able to participate on the global infrastructures which allow sending monetary assets without intermediaries, that’s your choice and you should really get out of crypto. Until crypto was developed, there was no way how a regular person would be able to participate on such infrastructures, it was purely in the hands of large corporations. Now we are able to do so.

  6. You can invest into protocols that have a useful product and who’s tokens value is sustained by the success of that product.

    CRV tokens for example are the governance and reward distribution asset for curve protocol. Their owners may vested escrow stake those tokens to get access to their voting rights and their cut of performance fees from the product.

    The product itself for Curve is an exchange that allows for high volume swaps between similar assets despite limited liquidity. You can use the curve protocol to move between USDC, USDT, DAI, FRAX, UST, and may other stable coins with very low price impact. (The price per trade is not limited to the 2 asset price curve that is standard for a 2 asset v2 style liquidity pool, hence the name curve)

    The token distribution of new CRV assets goes to the liquidity providers who supply to the pools that are incentivized to receive CRV rewards. Those incentives are voted on by the vested escrowed stakers. For other tokens out there, having the ability to deepen available liquidity by offering incentives not in your own native token but in CRV through and incentivized gauge while exposing your asset to the deep liquidity of curve is valuable so the CRV token voting rights are worth paying for.

    On top of all that, all the trading activities on curve generate an income from fees. That income is turned into 3CRV (USDT, USDC, and DAI in a pool) and those 3CRV are then payed to the vested escrowed stakers proportional to their share of the total stake. Like dividends in a share of stock.

    Not only do tokens have their own products, those products produce revenue and that revenue can be shared with token holders to give the tokens a value beyond speculation on future price.

    There’s billions of usd worth of liquidity supplied to curve and hundreds of millions in volume generating income for the protocol token owners.

    CRV is just one example of many DeFi protocols that have tokenomics that capture value for their assets and make holding and participating in these protocols a lucrative proposition.

  7. Yes. It’s just gambling. The fancy stories and team are no different than the dot com bust 20 years ago. Bitcoin *might be the exception though the 2/3 losses recently make it look like orange juice futures.

  8. Everything in life is a gamble, no one knows the outcome. All we can calculate is the possibility if things will go accordingly to our plan or not. You going to a good college doesn’t mean you would get a good job with good pay. its simple


Leave a Comment