Bear vs Bull: The Game
Thomas Loverro, General Partner at IVP, recently had an interesting LinkedIn post that reflected his predictions on how and when this crypto winter will end and how to emerge stronger, based on his experience of being on the Board of Directors for Coinbase, and many other firms. Below are a few highlights:
- “In 2022, crypto will go even lower. It’s the result of rising interest rates. So investors will suffer until rates stabilize. Going from crypto peak to floor has historically taken ~12 months. I expect that pattern to play out again, give or take.”
- “Winters are for innovating and taking market share. At Coinbase we used the 2018-19 trough to accelerate product innovation and challenge our existing assumptions. We made tough decisions but came out stronger.”
- “#btc peak was Nov 2021. The bottom will come after indifference sets in, and crypto is no longer making headlines, and the tourists have left. Human psychology will influence this timeline.”
- “We at IVP are excited to back the next-gen of crypto innovators, as we did with Coinbase, FTX, Sorare and TaxBit. My advice now is: Have enough cash to get through the next 30-36 months and, even more importantly, sufficient FAITH to survive the winter without wavering or chasing new and non-crypto directions. Crypto will come back bigger than ever.”
Have a look at the full post here.
📅 This Week in Crypto 📅
Those who think of Lambos and Manhattan penthouses will always be on the losing side, no matter what market they live through. To stay in crypto, you must act like a tough entrepreneur in a highly volatile market and think about creating value for the ecosystem, not consuming it.
40% of the surveyed American millennials have invested in cryptocurrencies, which is a larger chunk than those who own mutual funds, an Alto poll determined.
The crash doesn’t mean there isn’t any hope in this trillion-dollar market. In reality, the crypto market is slowly recovering, and there are lots of opportunities and strategies you can use to still make money – if you lost out due to market volatility recently, now is a good time to study and make sure you do not make the same mistakes again.
📰 Digital Take Away 📰
GameFi: the ultimate way to make money?
What is GameFi?
GameFi is the combination of two words: gaming and decentralised finance. GameFi combines blockchain technology elements such as non-fungible tokens (NFTs) and cryptocurrencies with gaming to provide economic incentives for players. GameFi is also referred to as play-to-earn (P2E) gaming.
Blockchain games come with multiple advantages over outdated traditional games today. Since GameFi is supposed to be decentralized in nature, no single entity or company owns it. Essentially the game’s developers allow its users, or a portion of it, to make decisions about the direction of the game. Furthermore, because it runs on the blockchain it grants true ownership to all your in-game items.
How much can you earn through GameFi?
GameFi is still a relatively novel idea. The term can be traced back to November 2019, which was mere months before the pandemic. During this time many people found themselves jobless, leaving them desperate and with nothing to do. What resulted is people turning to their phones and computers to access the internet and escape the real world to socialise in a virtual world for entertainment.
So how much can you realistically earn from GameFi? YouTuber Crypto King claims to earn $853 per day through Pegaxy, the play-to-earn horse racing game.
Based on 10 wins a day in the game Thetan Arena, YouTuber Go Shiny Hunter claims he makes $1500 per day based on the price of the in-game token THC.
For context, the average hourly wage in the private sector in the US as of May 2022 is $31.95. In an 8-hour shift, this equals $255.60, which is roughly 30% of what Crypto King earns from his bedroom playing games.
Looking Forward
GameFi only recently began and there has been massive growth in that niche with lots of exciting projects developing and gaining traction. GameFi still has a lot of room to grow and is still in the early stages of growth, a lot of failed web3 games have shown builders some flaws in developing a game that has crypto/NFT as an incentive. GameFi is taking the gaming industry by storm, and it will inevitably become the mainstream platform for gaming.
Written by Joshwa Shah