From a Christian perspective, what's the difference between gambling, forex-trading, crypto-trading, and seed-investing in startups?
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:
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. One is casting lots (eyi je, eyi o je); even though I understand that some gamblers bet with data, your money isn’t doing any work, and your profit comes from the loss of others. The latter runs in the matrix of financial markets and 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 companies value provided to customers in exchange for money), or I put $100 in 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). The profit comes from how well the company generally performs in all ramifications (an actual value exchange is taking place here).
For crypto trading, I think that’s slightly different. Suppose it’s legally backed (as some are already). In that case, that’s similar to forex trading, which basically deals with trading of currencies in the financial markets for commerce reasons (it’s an economic job technically); crypto is just a virtual digital version of forex, as the currencies in play are not 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, forex-trading, crypto-trading, and seed-investing 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.
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 there are a few who gamble just for fun, the majority 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