If I had one entire Bitcoin, I'd convert it to fiat when the exchange rate is high (hmm...say like $120-$130). Then, when Bitcoin drops value (like $70-$80) I would convert them back. Now I get more Bitcoins haha. Lather, rinse, repeat.

Unlike gambling, there is virtually no risk. You end up with either Bitcoins or fiat anyway, plus if you do this with like, say, 100 BTC, you could actually get a decent profit margin.