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claims/is-gambling.md
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# Crypto assets are a form of gambling # Are crypto assets 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. **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. 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.
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1. ———. 2018b. ‘Transaction Costs and Tethers: Why I’m a Crypto Skeptic’. The New York Times 21. 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. ———. 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. 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.