It was obvious, right from the beginning, a companionship so perfect I’ve been baffled for some time to why such a partnership had not formed nearer the beginning of the crypto revolution – well, wait and wonder no longer, cryptocurrency and the gaming industry are about to merge, the signals are already there, the technology framework already exists, now my friends it’s merely a waiting game to see who blows this market out of the water first!
State of the market
The gaming market in 2019 was valued at $151 Billion dollars; at the time, the expected growth rate until 2021 was predicted to be around 10% per annum, though these estimates were a product of a pre-covid world. With more and more restrictions on travel, and lockdowns now a part of the ‘new normal’, the gaming industry has of course, exploded!
The following chart shows you just how the pandemic impacted the gaming industry in the US. While profits have pulled back a little since the peaks of 2020, the long-term trend looks set for the skies.
A more important statistic though, is how many participants are in this market. The current estimate is 1.2 billion participants in the gaming area, up from 945 million just a year ago.
In a recent survey, 87% of gamers admitted to buying in game assets or participating in some way with the ever growing in-game monetization.
So, the next question is, what can Cryptocurrency bring to the table?
Welcome to the Metaverse
The term ‘Metaverse’ is something you might want to get used too. It’s the new buzzword on the street and everyone in silicon valley and their pet chi Wawa wants to sling the term around like John Wayne with a lasso at a cattle fare.
But exactly what does it mean? Well, aside from the slow disconnect of humanity from the real world, it means basically ‘Beyond our universe’ or for a better phrase, ‘Virtual Reality’.
The Metaverse is worlds within our world, an artificial universe created by humans for humans. Everything we once did in the physical three-dimensional reality we perceive with our eyes as they gaze upon the World around us is being recreated in the metaverse, built by code, compiled and distributed by Silicon Valley and promoted by the nefarious elitist technocrats behind the likes of notorious World Economic Forum and maniacal fruit loops like Bill Gates.
But, whether we like it or not, for now at least the metaverse is going to become part of human reality, and in many ways it already has.
Facebook recently announced they want to rebrand themselves around the metaverse, why – because they know where the next big thing is, and association with the term Metaverse will make and break businesses in the tech world over the next few years. They have changed the name of their Company from Facebook to META
But, while I may not be a huge fan of where all of this is heading, I can see the huge opportunity in making some money out of it, and while some may question the moral hypocrisy in such an investment, I disagree – If I can extract money out of the space and use it for good then I believe it’s an investment worth making.
I should also make one other disclaimer, just so you know where I am with this. I can see the inevitable growth of the metaverse because it’s addictive. I’m a sucker for technology myself, I’m a sucker for code and virtual worlds – I see the attraction, and this is why I know it is a space that will grow exponentially over the next decade. But while I see the attraction, I’m aware of where this is heading and thus only participate in the space from a purely professional and speculative side.
So….. Crypto Gaming, the Beta testing ground for the Metaverse, a kind of Betaverse….yes, let’s dig in.
Virtual Assets in a Virtual World
Non Fungible Tokens or NFT’s as most will know them are the magic link between crypto and the metaverse. It’s not the only way in which cryptocurrency can be utilized in virtual worlds, but it my opinion it will be the foundation of the growth in the space.
So, what is an NFT?
Cryptocurrency tokens such as Bitcoin are fungible tokens, each token is technically the same as an other. For example, a bitcoin is identical in specification and thus worth the same as another bitcoin (not entirely true due to each bitcoins transaction history being different, but this is a discussion for another time.) Where as a Non-Fungible token is unique, no two tokens are necessarily the same or interchangeable. An NFT is in a nutshell a programmable token with its own set of variables.
This programmable function for tokens at an individual level opens the door to a whole new World for cryptocurrency, you guessed it – the Metaverse.
NFT’s can be used for anything from Digital art, to a virtual hand crafted obsidian sword won by defeating a dark goddess in the latest edition of the Witcher.
NFT’s will have many use cases attempted, some will survive, most will fail. But the ultimate usecase in my opinion is Video Games and other areas of the metaverse.
Missed Bitcoin? This is the next Big Thing!
Over the past decade i’ve heard time and time again, “I missed the boat on Bitcoin”. People feel it is to late to get involved, get invested and benefit from the technology. They are wrong, but thats another discussion – however, there are always new oppurtunities on the horizon. If you are looking for them, they are their in plain sight. The Metaverse is the buzzword at the moment, even Facebook have rebranded their empire around the term. And yet, the majority of people will not pay attention to it from an investment perspective until the 10,000x gains are over, they will at which point bleat, “I missed the boat….”.
It isn’t rocket science, it isn’t some special kinda thinking, its simply paying attention to the World and the World right now is heading out the backyard, down a dark and dingy path to a virtual world being duped the ‘Metaverse’. Lucky us, maybe not, but lets at the very least try to capitalize from this monstosity to better prepare ourselves and loved ones for the future that’s coming.
Currently we are in the beta stage of this technology, I call it the Betaverse. Right now its indie developers building out virtual worlds on top of smart-contract platforms. These will be highly speculative, highly risky, but potentially highly profitiable as well. It’s the wild west, virtually unregulated and scammers round every corner.
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It’s a brave new world out there, buckle up and be ready!