In each new era of blockchain network innovation, there are typically a handful of trends that emerge. Those who take advantage of these trends can often make multiples on their initial investment if the emerging trend picks up traction.
As we enter 2022, I believe there are several trends within the blockchain and digital currency space that will thrive regardless of how the equities and the broader digital currency market perform.
In this article, I will explore the three segments of the blockchain/cryptocurrency industry that I believe will be prosperous in 2022.
Good play-to-earn games will be extremely successful. Most play-to-earn games have decentralized financial (DeFi) components (peer-to-peer liquidity) and traditional gaming components (the video game or esports component) which is why many people are calling this emerging market segment “GameFi.”
A play-to-earn game is typically a video game that gives a monetary payout to the winner of the game. In most of these games, participants must pay a small fee to play or join the game and the sum of those entry fees are distributed to either the highest-ranking player or a specified number of people who play.
Haste arcade games are a good example of a play-to-earn game built on BSV. If you play a game in the Haste arcade and rank on the leaderboard, then you will receive a micropayment from every player that plays the game after you and ranks below you on the leaderboard.
I believe GameFi has the potential to truly be a “killer app” for digital currency. By killer app, I mean a product/service that a large portion of the population finds desirable. I have this belief because:
- The ability to earn money and receive a return on investment is still the item/reason that most people are attracted to digital currency
- A good P2E game hides the blockchain-based components of the game to the point where the end-user may not even be aware that they are using the blockchain.
- Casual gaming and professional esports are industries that are astronomical in size, if a small fraction of “traditional” gamers migrate over to blockchain-based games then it could significantly increase the number of new blockchain network users. Keep in mind, new user growth is one of the most important metrics when it comes to a blockchain’s valuation and a blockchains ability to thrive.
Obstacles in the way for GameFi:
There are still obstacles in the way of GameFi experiencing mass adoption. Play-to-earn games require their players to have a digital currency wallet, and unfortunately, creating and operating a wallet is not …….