We see cryptocurrency go through many different phases. It is all part of the evolutionary process. As we grow, we see the industry expand as focus is paid in particular areas.
Over the last 5 years we can see how this unfolded. Thus far we had three major phases we went through.
Decentralized Finance (DeFi)
Non-Fungible Tokens (NFTs)
Naturally, these are still evolving and expanding. The ICO phase is over yet funding is not done. Presently we are seeing the successor to that, IDO, emerging.
The same holds for DeFi and NFTs. People are experimenting with them, developing different platforms and protocols.
We are now starting to see expansion into the next phase: Blockchain Gaming.
This is garnering a lot of attention of late and for the right reasons. It is all part of the evolution towards a new internet.
Gaming is a huge industry. There are more than 2.5 billion people around the world who enjoy online games. This is a market that is bigger than most continents, let alone countries. When it comes to cryptocurrency adoption, here is where the honeypot is.
Of late, we see the success of games such as Axie Infinity and @splinterlands. This is just the tip of the iceberg. They are starting to tap into what many of us saw as the future of gaming.
Across the technology world, the idea of the Metaverse is starting to get a lot more attention. Each week, there are more articles published discussing this concept and how we are heading towards it.
Nothing is more aligned with the present ideas of what that will be than gaming. Along with this, the Play2Earn is a core component that epitomizes the vision of the Metaverse.
Hence, we can conclude this is moving parallel to something much bigger. It is not just a phase that we are going through but, rather, a transformation.
Blockchain Gaming 1.0
We are only at the beginning of this. Presently gaming is operating based upon known reference points.
What this means is that first generation technology often is simply a new iteration of what is known. For example, the first personal computers were viewed as "advanced typewriters". This was what people could understand. There was no way for them to conceptualize a mobile device that is networked to billions of other devices around the world through "air". Yet this is where we are today.
Cryptocurrency is something that is hard for people to understand. Thus, the adoption rate is rather slow. It also suffers from the fact that, for the most part, much of the world is excluded since it takes present resources to get involved.
Gaming completely changes this. The idea of tokens and assets are very familiar to this group of people. Thus, the transition from a traditional, online game to a blockchain based one, from the user's perspective, is not great. In fact, there is no difference except one:
In-game currency and assets have a monetary value outside the game.
This is something that is radically altering the future path. Suddenly the Play2Earn concept holds a lot of validity. It is opening up the door for tens of millions of people to alter their financial situation simply by playing blockchain games.
The key here is this is still Blockchain Gaming 1.0. We still are dealing with the reference points to gaming that we understand: in game tokens and assets. This is akin to the early days of the personal computer.
What happens when Blockchain Gaming is at the "mobile device connected to billions of other devices" phase. Obviously that is some time down the road since there are many iterations that will precede this. The point is we now have an on-ramp to billions of people who understand the concept.
The main change, which is a major benefit, is their actions result in financial value gains for themselves, not some mega-corporation.
Pathway To Mass Adoption
We finally are seeing the vehicle that will appeal to the masses. Since they have a thorough understanding of gaming, the shift to blockchain is rather simple. In fact, from the user perspective it is the same.
Here is where the learning curve is reduced. Yes there is some education required about exchanges and how to maneuver around them. Yet even their many of these people are aware of the concept since they are accustomed to swapping in-game assets.
Nevertheless, joining a new game is nothing different for most people. A few breakthrough games that attract the attention of hundreds of thousands of users will quickly escalate the number of people involved in cryptocurrency.
A recent estimate is there are 225 million people now involved in cryptocurrency. This is quite a growth rate considering it was projected to be around 100 million at the start of the year. While these numbers are impressive consider this point:
Minecraft™ has an estimate 600 million people using it on a monthly basis.
That is almost a 3x of the number of people involved in cryptocurrency. When we consider this is only one game, the opportunity for mass expansion of cryptocurrency adoption becomes clear.
The next phase of cryptocurrency is going to be, by far, the biggest. It will outpace all that went before it. Of course, there is a bridging into the others such as NFTs. Those are going to be integral aspects of gaming.
It is the path of least resistance to massive adoption rates. There is already a built in, global community of gamers who understand the concepts and are technically inclined.
Gaming and cryptocurrency are starting to come together. Over the next couple years, we will likely see an explosion in this sector. Hundreds of games are going to be rolling out, a few that are going to be extremely successful.
As this occurs, the people exposed to cryptocurrency is going to grow exponentially. Gaming is the next phase of cryptocurrency.
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