Question (April, 2023):
From a Christian perspective and taking away the greed factor, what’s the difference between gambling, forex-trading, crypto-trading, and seed-investing in startups?
Answer:
God has called us to do all things with the mindset of adding value to and building up others. Without greed, they’re all the same. You’re putting in some cash with the goal of earning profit (ROI). However, there’s a slight difference between gambling/lottery and stock trading/angel investment, forex trading, and crypto trading.
Gambling/Lottery is casting lots (èyí jẹ́, èyí ò jẹ́ —a Yoruba proverb translating literally to “this works, or this does not work”); even though I understand that some gamblers bet with data, your money isn’t doing any work or adding any meaningful value to others, as Acts 20:35 and Philippians 2:3-4 mention. In addition, your profit comes from others' loss.
Stock trading/Angel investment leverages data to predict and make decisions that will yield an ROI. That is, I give company A $5k and expect to get $50k in 10 years (this profit comes legitimately from the company's value provided to customers in exchange for money), or I put $100 in an S&P 500 index fund (giving me a tiny percentage of share ownership in some companies through stocks) and hope to get some undefined amount of profit. The appreciation or depreciation of my stock value depends on many factors. Still, fundamentally, you receive a small stake in the company, making it similar to an angel investment (with the added benefit of ownership). Profit comes from how well the company performs overall (an actual value exchange is taking place here).
Forex trading involves trading currencies in the financial markets for commercial reasons (it’s technically an economic job, especially when done by a bank, trading firm, etc., not regular retail individuals). Traders add tangible economic value to global financial markets when they do so with the right mindset (which is often not the case for retailers) by keeping the market efficient, functional, and accessible. When traders buy and sell constantly, this flow ensures that businesses, banks, and travellers can exchange currencies instantly without big price increases. Their trading volume also lowers transaction costs, making the market cheaper and more efficient for everyone. By taking the risk, traders help global businesses access predictable prices for international trade.
Crypto trading, I think, is slightly different. Suppose it’s legally backed (as some are already). In that case, it’s similar to forex trading; crypto is just a virtual, digital version of forex, since the currencies in play aren't tied to any country as legal tender (national currency). The above provides some background information on how I’d process each concept in question.
To define things, an investment is “an asset or item acquired “ with the goal of generating income or appreciation. While Appreciation refers to an increase in the value of an asset “over time.” Emphasis on “assets” and “over time.”
In summary, stock trading/seed-investing, forex trading, and crypto trading are investments (you’re dealing with assets that will appreciate over time), while gambling is not an investment since there’s no asset acquisition involved nor value appreciation over time, but only placing stakes on something of value.
Do nothing from selfish ambition or conceit, but in humility count others more significant than yourselves. Let each of you look not only to his own interests, but also to the interests of others. —Philippians 2:3-4 (ESV).
So I’d say that any of the ones categorised under investments can be acceptable in the sight of God if they are done with the right mindset and heart before God, driven by a genuine desire to add value to others and earn returns in the process.
Now that the above has been established, and to be clear, gambling is not a sin according to the Bible (I can’t find any record of it being a sin). The Bible only warns against the love of money, greed, idolatry, and lack of hard work —all of which lead to sin. “For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.” —I Timothy 6:10 NKJV.
While a few gamble just for fun, most gamble out of love of money. Gambling is addictive, and the Bible warns Christians to flee from every appearance of evil. But again, just like the conversation about alcohol. The Bible doesn’t say drinking alcohol is a sin, but “being drunk” is a sin. As a Christian, why shouldn’t you then drink alcohol if you’re confident you won’t get drunk? I have a personal bias that it’s almost impossible not to get addicted to alcohol if you drink it often (and potentially slip into getting drunk), but data shows that some people can drink often and not get drunk. Also, there are health dangers of drinking alcohol, especially at a consistently high consumption rate. If you ignore that and slowly harm your body, you’re committing a sin by not taking good care of your body— the temple of God.
Now, there’s a negative societal perception of gambling and drinking alcohol (which doesn’t seem to exist for the ones people have termed legit investments, e.g., stock trading, crypto trading, angel investment, etc.). The Bible relentlessly pushes us toward simplicity and economy for the sake of the gospel 1. The more accustomed we become to gambling, the more difficult it is for us to be simple and economical, and the less it looks to outsiders (unbelievers) that we’re free from “the pleasure of money”. In wisdom, we should then avoid such things.
There’s also the part where gambling is wasteful and often a “get rich quick” scheme that takes away honest labour and the work of earning your money (or your money working by exchanging value for money).
“Wealth obtained by fraud dwindles, But he who gathers gradually by [honest] labor will increase [his riches].” —Proverbs 13:11 AMP.
“Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” —Proverbs 13:11 ESV
To end, I’ll quote GotQuestions.org and add some verses at the end:
“Gambling is poor stewardship of one’s God-given resources, it attempts to bypass honest work, it promotes greed, covetousness, and it rejoices in the misfortune of others. A Christian should not be involved in gambling or in other forms of materialism.”
“All things are lawful for me, but all things are not helpful. All things are lawful for me, but I will not be brought under the power of any.” —I Corinthians 6:12 NKJV
“All things are lawful for me, but not all things are helpful; all things are lawful for me, but not all things edify. Let no one seek his own, but each one the other’s well-being.” —I Corinthians 10:23-24 NKJV
“Therefore, whether you eat or drink, or whatever you do, do all to the glory of God. Give no offense, either to the Jews or to the Greeks or to the church of God, just as I also please all men in all things, not seeking my own profit, but the profit of many, that they may be saved.” —I Corinthians 10:31-33 NKJV
““No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and mammon [money, possessions, fame, status, or whatever is valued more than the Lord].” —Matthew 6:24 AMP
“Let your character [your moral essence, your inner nature] be free from the love of money [shun greed—be financially ethical], being content with what you have; for He has said, “I will never [under any circumstances] desert you [nor give you up nor leave you without support, nor will I in any degree leave you helpless], nor will I forsake or let you down or relax My hold on you [assuredly not]!”” —Hebrews 13:5 AMP