What Crime is Gambling (Is the Gambling Industry a Scam?)

08/19/2023 15:55 • Tech Ticker • 155 views

What crime is gambling? Many people don’t know. In terms of our country’s laws, “gambling” refers to “betting”. If we consider investment as a form of gambling or as a type of online game, then the so-called “betting” (referring to investing other people’s idle money into one’s own gambling activities) turns people into a “leek” (a term used to describe individuals who are easily exploited). Therefore, for those engaged in internet gaming and blockchain-related work, punishment should be determined depending on specific circumstances.

Is the Gambling Industry a Scam?

The blockchain industry, apart from the gambling sector, has also thrived in the financial sector. In the case of the Bitfinex hacking incident in the digital asset trading platform, users lost over 300 million US dollars. And after the hacking of the cryptocurrency exchange Coinbase, with an amount involved exceeding 50 million Hong Kong dollars, Bitcoin’s price dropped by more than 30%.

All of this is attributed to the scam of “gambling”. Then, what exactly is “gambling”? What is it? Does it comply with the laws and regulations regarding “mining”, “gambling”, “money laundering”, and the flow of funds behind it? Let’s discuss. “Mining” and “gambling” are both ways of investment. When investors find themselves in a speculative state, they will be tempted to participate in the game. If they suffer losses, they will face liquidation risks, causing “losers” to suffer economic losses. If there are losses, some investors will incur huge losses. If greed leads to illness, which may result in the inability to recover or even death, it will affect the safety of the principal and the income of assets. Therefore, “mining” and “financial management” are actually two different profit methods. One is to invest profits into high-return investments for speculation, and the other is to hedge potential losses by purchasing low-return so-called stable income products with high interest rates. “Playing and profiting” refers to using virtual tokens as rewards to obtain the opportunity to gain new “leeks”. For example, someone can buy a 100 yuan free lunch every day or participate in various activities and obtain cash at high prices. In recent years, more and more people have joined this emerging market for investment, and “mining” is a good way to make money.

However, since there is such a huge ecosystem supporting the development of the entire internet industry, why can “playing and profiting” be deemed illegal by regulatory agencies? This is because the market is currently flooded with false advertisements, pyramid schemes, and other behaviors, and much of the information is publicly available on various websites. How to judge legality and compliance under such circumstances still requires further verification: “I don’t think there is any place that can guarantee that the projects ‘mined’ are actually reliable.” Therefore, “if you’re lucky, you should sell it on the secondary market; otherwise, there will definitely be people rushing into the network platform, bringing greater financial pressure to those who want to make quick profits and maximizing their interests.”

However, in fact, due to the immutability and security of blockchain technology itself, once a vulnerability appears, it can easily cause significant losses. For example, in order to prevent similar cases, some countries have introduced a product called “Cloud Tour Eurasian Public Chain”, attempting to achieve a distributed ledger application (DAPP) based on blockchain technology. However, although the code of this project has been released, there are still some issues that need to be resolved in practice – namely, the use of smart contracts to maintain consensus protocols.

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What Crime is Gambling (Is the Gambling Industry a Scam?)

Is the Gambling Industry a Scam?

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