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Buying and Selling NFTs is Comparable to Gambling

Published: March 18, 2024

Over the past few years, many new forms of digital technology have entered the mainstream. Cryptocurrencies like Bitcoin and Ethereum are more popular than ever, and NFTs (Non-Fungible Tokens) are still bought and sold every day. Due to the unpredictability of their value, trading NFTs is comparable to gambling, and people who purchase them might be at risk of developing a gambling disorder. Before you purchase an NFT, make sure to consider all the risks and set limits on your spending.

What is an NFT? 

A Non-Fungible Token is a one-of-a-kind piece of digital art that cannot be replaced. Like a piece of physical art, there is only one owner of an NFT. Examples of NFTs include images, videos, and musical recordings. 

NFTs have been around since the early 2010s, but it wasn’t until 2021 that a surge in popularity pushed them into the mainstream. Suddenly, a few digital images were selling for millions of dollars. This created a sense of urgency for the people who didn’t want to miss out on an opportunity to get in on the earnings. 

What’s the Risk? 

The price of an NFT is subjective and can change rapidly. There is an inherent risk for purchasers who feel pressured to capitalize on an opportunity to buy low and sell high, just like taking a gamble on the stock market or cryptocurrencies. 

An article from NFT Evening explained that subjective pricing isn’t the only danger to consider. Among others, their primary concerns include:

  • The undetermined legal standing of ownership – the field is still developing, and users can’t always expect proper legal protection or insurance on their purchases. 
  • There are technical risks with cybersecurity, and some systems could potentially be hacked. 
  • Some markets are subject to manipulation. High prices have been created artificially through fake transactions. 

Just like any other form of gambling, the best plan is to set limits on what you’re willing to spend and understand the risks involved with purchasing NFTs.

If you or someone you know has questions or concerns about their gambling, the Problem Gambling Helpline is available 24/7. Trained and understanding specialists are standing by to offer free and confidential support with no strings attached. Call 1-800-589-9966 or text 4HOPE to 741741.

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