Is crypto investment or gambling?

Is crypto investment or gambling?

It completely depends upon perspective and application strategy.

As gambling, probability and prediction come into the picture. If the sole purpose for investing/buying/creating crypto is to make quick money and the entire process is done keeping this in mind, then it is categorized under gambling.

On the other hand, if a vision is there for the long term in terms of development, then Crypto does not remain limited to mere gambling, it gets enhanced to investment. A long-term strategic approach inculcated while dealing with crypto certainly adds value to the procedure as well as the result.

However, none of the processes ensures profit altogether, as it is always subjected to market risks and other factors. All in all, it can boldly be stated that it is usually beneficial to treat crypto as an investment. This certainly plummets the probability of loss.

Why are there so many cryptocurrencies?

The very first blockchain and cryptocurrency were Bitcoin, but since then more companies have realized the true potential of the market, and with their own modifications in the logic have launched multiple blockchains over which multiple coins have been launched by people who are looking for investments in their ideas or solutions.
There are more than 20,000 cryptocurrencies in the market, launched by people who believe in their products and want to get investors all over the world. Doing this is quite easy, we can help you develop your own currency in no time, and using which you can improve your existing business solution and get investors all over the world instead of looking for angel investment.

What will happens if cryptocurrency banned in your country?

since cryptocurrency is decentralized and there is no control of any governing authority whatever assets you own outside exchange is your private wallets will still hold value. government can only control transfers to banks. But in the coming 2-3 years you would see that you can buy/sell any services all over the world in cryptocurrency and the basic idea of cryptocurrency is to get rid of the banks. so there will be zero impact over cryptocurrency if a ban is imposed by the government. El Salvador has already listed bitcoin as a legal asset, more to come in a short period of time.

Some governments have already implemented blockchain based projects that do not require cryptocurrencies. Then why do we need cryptocurrency?

As discussed above, these projects are akin to building a private blockchain network, and not the internet. Such projects can co-exist with other private innovation. Further, such projects, whether it is the state-run land records management or ‘digital Rupee’, will require the government to manage the infrastructure at its own cost. When these projects use a privately-built blockchain network, the infrastructure is built and used on a private server without any token or cryptocurrency. It is easier to replace the infrastructure and move to a better service.

Should government services be operated on privately operated infrastructure?

Yes, many government applications operate on open internet. Additionally, the true potential of this technology is realized when it is used in a decentralized fashion. When centralized (i.e., when it is run by the government or an organization on its own infrastructure), the records are only as safe as the central server is. A decentralized project on the other hand does not have a single point of attack and is considered highly secure.
Additionally, private blockchains are like centralized databases build over Hype ledger Fabric or Quorum blockchain that are not interoperable making the infrastructure owner as the centralized authority which can have full control over the data. They will only result in isolated silos of data or information which will not be able to interact with each other. However, a publicly available blockchain infrastructure will also provide interoperability. This is done to use the features of a blockchain without making the data public. For example, the COVID vaccine distribution and its feedback can make use of private blockchain to allow government to easily track and trace the progress of every user’s vaccination status, and since this will be an immutable ledger once an entry is made will never be deleted from the blockchain network. However, the participants of the network will be able to update the records while maintaining the back tracing.

 

 

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