diff --git a/claims/is-gambling.md b/claims/is-gambling.md index d1ae033..50b5a97 100644 --- a/claims/is-gambling.md +++ b/claims/is-gambling.md @@ -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. \ No newline at end of file +1. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.