Archives forSuperior Forms of Gambling

Cognitive bias parallels in investing and gambling

A cognitive bias is defined as when “individuals draw inferences or adopt beliefs where the evidence for doing so in a logically sound manner is either insufficient or absent". In other words, it is when human beings act in ways that are not entirely rational. Cognitive biases exist in both investing and in gambling. In fact, one such cognitive bias is commonly referred to as the gambler’s fallacy. This occurs when a gambler or investor draws inferences about future outcomes based disproportionately on recent outcomes or events. The classic gambling iteration of this bias occurs in roulette. Casinos often will display a series of prior outcomes, including the outcome’s color (red, black or green for zero) adjacent to the roulette wheel. An unsophisticated gambler might...

What path to choose if you’re planning on investing through cryptocurrency

[…] Bitcoin. Going to zero. Skipping all the community dramas and the hard forks, even if the team behind Bitcoin Classic would manage to take over the development process, I still see this going to zero. Too much has to be changed in the source code and too many dangerous hard forks have to occur in order for it to become Ethereum. […]

1 2