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Investing is gambling in disguise for many Indonesians
The ever-rising number of online investing platforms has some Indonesians wonder whether they are in fact investing, or rather gambling, given the blurred line between the two. The Jakarta Post has asked young Jakarta investors about their self-awareness.
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Tilak Fernando places a bet at a roulette table during the reopening of the Bellagio hotel-casino, closed earlier to slow the spread of the coronavirus disease, in Las Vegas, the United States, on June 4, 2020. (REUTERS/Steve Marcus)
T
he ever-rising number of online investing platforms has some young Indonesians wonder whether they are in fact investing, or rather gambling, given the blurred line between the two.
“Capital market players who value investment instruments as gambling opportunities is somewhat unsettling, because without analysis and risk mitigation, investment does become a gamble,” said Isya Yusrilyahya, director of PT Sinergi Selaras Kapital, a Jakarta-based investment advisory firm.
Putting money into new investment instruments like cryptocurrency and nonfungible tokens (NFTs), admits Ajay (not his real name), is somewhat closer to gambling than investing due to the extreme volatility.
“I exclusively [trade] coins of a high-risk, high-return nature,” Ajay said, using a derogatory term for coins that often fluctuate wildly for no apparent reason and represent projects that lack real development.
“Actually, I just ride the wave when it comes to crypto, I don’t do due diligence,” Ajay told The Jakarta Post on Friday.
The 25-year-old civil servant said he was now no longer trading crypto but might get back into the market closer to the next so-called bitcoin halving, a major cyclical event in the dominant cryptocurrency where new supply is slashed, which historically has lifted the entire crypto market.
Ajay says he approaches other investment instruments, such as mutual funds, with greater prudence, going through some analysis and risk assessment before plunging in.
