Bitcoin vs. Gambling – What’s the Difference?

Many people refer to speculating on Bitcoin as gambling. They point to this cryptocurrency‘s long history of volatility and how its price can swing wildly from one day to the next.

In essence, Bitcoin (BTC) speculation is akin to gambling. Much like with the stock market, you’re purchasing BTC and hoping that its value increases at some point in the future.

However, Bitcoin isn’t necessarily the same as traditional forms of gambling, such as casino games, poker, sports betting, and lotteries.

It features some key differences from pure gambling. I’m going to discuss the various ways how Bitcoin and gambling differ from each other.

Bitcoin Has Increased in Value Over the Last 10 Years

As covered above, the house holds an advantage in many forms of gambling. You’re more likely to lose than win when playing casino games or buying lottery tickets over time.

Bitcoin differs in this aspect, because it has increased greatly in value since coming available in 2009. BTC was only worth one penny per coin after being introduced by Satoshi Nakamoto.

At the time of this writing, one Bitcoin is worth approximately $9,400—a 94,000,000% increase! Of course, the rise from one penny to nearly five figures hasn’t been smooth.

The Current Value of Bitcoin

This leading cryptocurrency has seen plenty of boom and bust periods. Following the 2014 Mt. Gox hack, Bitcoin’s price dropped from approximately $1,200 to $120.

In late 2017, Bitcoin peaked at nearly $20,000 per coin. However, it would crash down to around $3,000 by April 2018.

The rises and falls of Bitcoin are notorious. But overall, this cryptocurrency continues gaining value as an asset over time.

The same can’t be said of most types of gambling. You can win long-term profits in games like poker, blackjack (card counting), and sports betting.

Again, though, the house enjoys an edge on almost everything. You may win in some sessions, but the odds are stacked against you.

No House Edge With Bitcoin

Most forms of gambling feature a house advantage. Casino gaming, the lottery, and bingo all give the operator an edge.

You can overcome this house edge by playing games with higher return to player (RTP) and getting some luck on your side. But you’re most likely going to lose in the long run.

Bitcoin differs, though, because it doesn’t feature a house edge. Sure, winners and losers exist in the cryptocurrency world.

But nobody can say for certain whether you’ll be among the BTC losers. After all, nobody knows exactly where this asset is going in the future.

The closest thing to a Bitcoin house edge includes the fees that exchanges take out of trades. For example, an exchange might collect 0.5% of every trade that you make.

The small fee means that you need to do slightly better than breaking even to earn profits. However, you can still earn guaranteed money if you have the skills and insight to make smart trades.

Some Forms of Gambling Are Less Volatile

You can see that Bitcoin is attractive in that it provides a chance to make long-term profits. But you also have to deal with more volatility regarding BTC when compared to certain forms of gambling.

The days when Bitcoin would rise and fall by 50% in a single day may be long gone. But BTC is still far riskier than the stock market.

Just imagine putting $5,000 into Bitcoin one day, only to see your investment drop by 20% the next day. Herein lies the danger of buying BTC.

Baccarat, blackjack, craps, and roulette are less volatile by comparison. Each of these games offers bets and opportunities that see you win close to 50% of the time.

Here are the best available wagers with each game:

• Baccarat’s banker bet = 1.06% house edge
• Blackjack = 0.5% to 2% (depending upon rules and your strategy)
• Craps’ don’t pass line bet = 1.36% (lower when backed with “odds”)
• French Roulette = 1.35% (European wheel with la partage)

Aside from the fact that you win almost half the time with these bets, you can also enjoy extremely low house edges.

Of course, these casino games don’t offer the same potential to earn long-term winnings like with Bitcoin. But you can also better control your losing streaks and quit at a certain point.

Gambling Is a Better Known Entity

Bingo, casino games, and lotteries have been around for centuries. Gambling as a whole has existed for thousands of years.

Many people are comfortable with gambling as a result. They have an idea of what to expect regarding wins and losses and can budget accordingly.

Bitcoin doesn’t offer the same comfort level to the average person. It has only been around for just over a decade and largely carries a negative reputation.


Mainstream news outlets associate BTC with drugs and other illegal activities. Some people still believe that you’ll quickly lose all of your money after buying Bitcoin.

These fears are valid to a certain extent. However, they’re also irrational to a larger degree and often pushed by those who know nothing about cryptocurrency.

These fears have arisen due to the fact that most people are largely unfamiliar with BTC. The average person feels safer placing bets that they already understand well.

You Stand Less of a Chance of Losing Everything With Bitcoin

As a currency, Bitcoin definitely isn’t as stable as major fiat currencies, such as USD, GBP, and EUR. It’s too volatile to serve as a global currency at this point.

Some opponents use volatility to fear monger the idea that any BTC investment could reach zero tomorrow. The truth, though, is that you stand a far smaller chance of losing your funds with Bitcoin than with casino games or poker.

Many gamblers take a few hundred dollars into the casino or deposit an equivalent amount on gaming sites. The house edge, or opponents in the case of poker, eventually grind this initial investment down to zero.

The gambler then has an option to either deposit again or quit playing. They may get lucky the second time around or continue the cycle by losing everything once again.

In either case, they’re taking a much bigger risk of losing everything through traditional gambling versus Bitcoin. Even when losing with the latter, you’ll probably pull some money out after suffering a loss worth between 10% and 50% of your initial investment.

BTC losses of any kind aren’t an exciting prospect. But they also allow you to recoup some of your funds.

Gambling Sites Offer Many Bonuses

One reason why gambling sites are so successful is because they offer many online gambling bonuses. These bonuses give players a chance to recoup losses or even add to profits during a hot streak.

Most sites start you off with a welcome bonus based on your first deposit. Here’s an example:

• 100% match deposit bonus on first deposit with up to $1,000.
• You deposit $500.
• You can earn a matching $500 bonus after meeting terms and conditions.

From here, you often have an opportunity to earn additional deposit bonuses and other rewards based on the type of gambling. Casinos, for instance, deliver free spins, free chips, and blackjack bets.

Cryptocurrency exchanges also offer bonus opportunities. But these opportunities may be limited or even nonexistent depending upon the exchange.

The most common promotion includes reduced trading fees for a certain time. Overall, though, you won’t have nearly the number of chances to earn bonuses at Bitcoin exchanges as you will with gambling sites.

Bitcoin Investing Strategy Is Different

You don’t need to use any strategy when buying Bitcoin or gambling. However, your chances of winning with each increase as you improve your skills.

Most types of gambling feature set strategies that involve choosing a specific bet and making the right decisions.

With blackjack, for example, you must make the right choice based on your score and the dealer’s upcard. You can quickly learn optimal play by finding a blackjack strategy chart online.

Bitcoin trading also features strategy. But the path towards BTC trading success is not as well-known as with most forms of gambling.

Many BTC traders adopt a buy and hold strategy (a.k.a. hodl). They purchase Bitcoin and hold it with a long-term price point in mind.

Others employ a day trading or swing trading strategy. Commonly used in the stock market, day and swing trading involve purchasing BTC and selling it within a short time span.

A method exists behind the madness when it comes to successful Bitcoin trading. However, there are no BTC strategy charts that make for quick and easy references.

Conclusion

Bitcoin definitely involves a gamble. However, it also features plenty of differences from regular gambling.

You don’t walk into a store and buy a Bitcoin lottery ticket or sit down and play BTC hands. Instead, you essentially buy an asset and hope that it’s worth more in the future.

Assuming you like gambling, yet want to risk your money in a different way, then Bitcoin trading can satisfy this urge. But you also need to master the intricacies involved with trading BTC versus playing casino games or poker.