The Narratives Set To Drive 2025
As many of us look to next year and beyond, the overall expectation is somewhat similar. A bull market largely driven by tokenization, AI, and WEB3-based projects is fast becoming the predominant narrative. However, another sector is beginning to garner a lot of attention, and that’s gaming! I have published several gaming-related articles over the past few weeks. I have also named a few of my gaming picks for 2025.
There is however somewhat of a potential hurdle ahead, and that’s the expected crackdown from regulators regarding DeFi. Essentially, WEB3 is synonymous with DeFi, and vice versa. And so, a bombshell in either camp is likely to affect its mirrored counterpart. I think, as investors, we should be aware of the likelihood of such an event playing out. However, gaming and certain WEB3-based projects are still enormously bullish.
Something that I have begun to explore again is the idea of virtual gaming… projects with more of a metaverse edge. Metaverse projects were and are, in many instances, premature. However, the launch of the Apple Vision Pro has also helped to “prepare the way” for metaverse-based projects. Essentially, you have to condition people to think a certain way before garnering significant attention and adoption regarding a new idea.
The concept of the metaverse is still in its infancy. However, it will begin merging, perhaps even, amalgamating with already existing sectors such as gaming… and it’s this school of thought that has encouraged me to begin researching certain projects with this dynamic at play. Another reason for this decision is, not only opportunity, but also significant discounts.
Much like AI, before its recent resurgence, metaverse projects have been punished to the point of almost being obliterated. I guess there are certain ideals that I practice, along with investors like Buffet. Even though I don’t generally subscribe to his school of thought, primarily due to my perception of how he acquired his success. However, value investing is a key and foundational practice of investment success.
I own a copy of The Intelligent Investor, by Benjamin Graham. It’s this book that Buffet claims was foundational in his investment approach. Coincidentally, the book evolves around the concept of value investing, which is ultimately the practice of identifying investments that are valued well below their intrinsic, or reasonable value. Essentially, this drives much of my decision-making.
When I first encountered Taraxa at a market cap of approximately $4 million, I immediately recognized the “value investing” dynamic at play. There was simply too much value tied up in the project, and a market cap valuation of $4 million was not only unrealistic but absolutely ludicrous. Since then (4 months ago) we have seen Taraxa almost reaching a market cap of $100 million. Currently, Taraxa’s market cap is approximately $70 million.
Once you have identified a project at these levels, the chances of ever encountering loss are almost completely eradicated. This is perhaps why I am so determined and focused when it comes to micro-caps. Essentially, I am looking for investment opportunities that can never enter a position of loss. For instance, purchasing Solana at the ICO price of $0.22 removed the concept of loss.
Even the carnage of the FTX collapse was unable to plunge early investors into a position of loss. This is another reason why blue chips are not as inherently “safe” as is suggested, and why I avoid them, at least for the most part. I want more significant gains, along with a better level of “insurance”. One has to however deploy a well-thought-out and disciplined strategy when it comes to this particular sector.
At the end of the day, I am constantly in search of new areas and opportunities within the micro-cap sector. I have only just begun delving into this particular idea. So, I still need to establish, if indeed there are any viable opportunities on offer. That’s it for this one. Enjoy the frenzy! See you next time, and keep stacking sats for the next cycle peak!
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This article was first published on Sapphire Crypto.