When China announced the banning of cryptocurrency, and world leaders started commenting on the potential regulation of such assets, further issues happened with the value of Bitcoin, which dropped from values around the $50k mark, to values of around $40.
While it’s difficult to predict exactly what’s going to drive consistent growth in this industry, that’s one of the main things you’ll need to learn how to do if you’re planning on joining the crypto market.
Sometimes, this means looking beyond the traditional concepts you might consider to be crucial to the growth of crypto, like risk, and thinking about development in the digital market instead.
Could Digital Transformation Influence Crypto Growth?
One interesting commentary arose lately about the impact of gaming on crypto assets. David Gan, the former Huobi founder, commented that one of his primary motivations for launching a $25 million venture fund was to create greater flexibility and autonomy in his investment decisions.
He wanted to move fast to follow the rapid innovation in the crypto industry. Over the course of this year, many funds have begun pouring more money into blockchain and crypto startups, pushed by the idea that digital assets will disrupt the global economy following a complicated couple of years.
As standard currencies like the GBP and USD value continue to struggle, crypto is gaining more attention.
So where does gaming and digital technology come in? Blockchain technology has an impact on how web-based information in stored, and that’s where Web 3 is connected.
The concept of Web 3 describes a new generation of potential internet services – something that almost everyone in the digital age will be interested in. The emergence of a universal state layer for the management of data in the future could create a value settlement opportunity within the internet.
The rise of this technology could allow users to send files in a protected format, enabling peer-to-peer transactions without the use of men in the middle. This would allow individuals to access a new form of internet access without compromising on valuable information and privacy.
Gan’s company hasn’t disclosed the projects in this area it’s seeking to fund yet, but the emergence of an interconnected environment with Web 3 would definitely prompt exciting opportunities in the years ahead.
The Connection Between Gaming and Crypto
There are various factors which influence any kind of asset value, including the appetite for risk in the current environment. For instance, risk in crypto is likely to seem less severe when the risk in standard currencies is high. Industry-wide factors like regulation throughout China, and in other countries going forward will have a specific impact too.
However, as a digital currency, cryptocurrency is also highly impacted by digital transformation and fully embraced in other countries. Allowing crypto trading in South Africa gives way to a surge in trading activity.
One of the predictions made by Gan recently is that gaming could be the main feature to bring the initial load of around 100 million new users to the market for crypto investment.
The connection between crypto and gaming has actually been gaining a lot of steam lately, particularly with the arrival of things like tokens in mobile and console games, which paves the way for the ownership of digital items which gain their own kind of value.
Virtual communities in the gaming sector could quickly emerge as a vital part of all kinds of cryptocurrency investment. Perhaps the biggest impact of this sector will be the ability to access a safe place where you can find community and support when you need help building your assets.
There are million gamers who currently own cryptocurrency right now, and almost half of them fall between the ages of 21 and 38, in the Millennial group.
The suggestion that new web development opportunities and gaming will continue to play a valuable part in the growth of cryptocurrency makes it easier to see new opportunities in the marketplace.
The growth of venture capital focused on crypto suggests a lot of investors are looking at digital assets and blockchain technology as more than just their immediate market value. Funding will likely continue into the crypto market going forward, even in the face of regulation issues.