jeffemmett
/
web3
1
0
Fork 0
Code Issues Pull Requests Packages Projects Releases Wiki Activity

title fix and subjective sentence removed

This commit is contained in:
EilidhRoss1 2022-07-19 14:42:18 +01:00 committed by GitHub
parent c5100cd729
commit b72b78da6e
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 5 additions and 3 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

8
claims/is-gambling.md
View File

@ -1,5 +1,7 @@
# Crypto assets are a form of gambling
Purchasing crypto assets is a form of gambling. Crypto assets have no [income](../concepts/income-cashflows.md) and [use value](../concepts/use-value.md) and are [zero-sum games](../concepts/zero-sum-game.md) and thus have no [fundamental value](../concepts/fundamental-value.md). Trying to time the market of crypto assets is equivalent to games of chance and [gambling](../concepts/gambling.md) with a negative [expected return](../concepts/expected-return.md). This is strictly worse behaviour than participating in [price-formation](../concepts/price-formation.md) in the [stock](../concepts/stock.md) and [commodity](../concepts/commodity.md) markets.
# Are crypto assets a form of gambling?
**Crypto assets are a form of gambling**
Crypto assets have no [income](../concepts/income-cashflows.md) and [use value](../concepts/use-value.md) and are [zero-sum games](../concepts/zero-sum-game.md) and thus have no [fundamental value](../concepts/fundamental-value.md). Trying to time the market of crypto assets is equivalent to games of chance and [gambling](../concepts/gambling.md) with a negative [expected return](../concepts/expected-return.md).
Crypto assets are not gambling if one participates in a [cartel](../concepts/cartel.md) which does [pump and dump schemes](../concepts/pump-and-dump.md) or other forms of [market manipulation](../concepts/market-manipulation.md) which uses [asymmetric information](../concepts/asymmetric-information.md) to defraud other market participants. Pump and dump schemes result in a net wealth transfer from the larger [market](../concepts/market.md) to a small set of insiders.
@ -22,4 +24,4 @@ Crypto assets are not gambling if one participates in a [cartel](../concepts/car
1. ———. 2018b. ‘Transaction Costs and Tethers: Why I’m a Crypto Skeptic’. The New York Times 21.
1. ———. 2021. ‘The Brutal Truth About Bitcoin’. The New York Times 21.
1. Taleb, Nassim Nicholas. 2021. ‘Bitcoin, Currencies, and Fragility’. ArXiv:2106.14204 [Physics, q-Fin], July. http://arxiv.org/abs/2106.14204.
1. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.
1. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.