Question:

Hi,

Please I want to make an inquiry on bitcoin, cryptocurrency, and the like. As a Christian, is it advisable to be involved in these?

Answer:

Cryptocurrencies are electronic funds. They do not represent anything in the real world, such as a stock of gold somewhere. They are not backed by a government. They have been popular among criminals since they are not stored in some banks and so are harder to trace. Investing in cryptocurrencies is not the same as investing in a company through a stock market. It is used in some legal companies because it allows faster transfer of money, especially internationally, without government regulations at extremely low cost. But that same lack of regulation is what makes cryptocurrencies popular among the unethical.

Basically, the investment is done in hopes that the value of the currency will increase. Cryptocurrencies have been extremely volatile because there is nothing that it represents. Its value is only what people are willing at any given moment to pay for it. Robert R. Johnson, professor of finance at Creighton University notes that the value of cryptocurrencies relies on new investors to drive up the value. This sets up eventual failure as eventually, you run out of new investors ["7 Things to Know Before Investing in Cryptocurrency"]. There is also the problem that new currencies are being created all the time, which waters down the value of anything currently existing.

While cryptocurrencies might have uses in the exchange of funds, investing in these currencies becomes nothing more than gambling.

"A simple definition of gambling would be, desiring the possession or possessions of another (the prize), the gambler creates a risk (that of losing his own possession) in an attempt through chance to gain the possession or possession of another with nothing given in exchange. Gambling takes many forms: card games, dice, numbers, betting, slot machines, sports pools, punch boards, bingo (for money or prizes), raffle tickets, matching, and even pitching pennies."

The investor in cryptocurrencies is hoping others will drive up the price so that he can sell his currency at a higher price (which then lowers the price for others). But nothing is purchased, no business is invested in, etc. See Gambling regarding why trying to get something for nothing is wrong.

 

Response:

Thank you for your information am grateful

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