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2020 started booming Crypto. 2021 expanded NFTs. 2022 is the year of GameFi.
The integration of blockchain, crypto, and gaming is producing a new industry giant this year.
The world was hit in 2020. When hundreds of people who invested in an initiative called Bitcoin had a return on investment of 10X in a year. You have to keep in mind that an annual return of 10% is very good. Hence, a 10X (which is 1000%) is unreal. However, that's not the most impressive feature.
The fact that governments and entities widely accepted this form of payment, cryptocurrency, is the surprising aspect. This changes the financial industry as we know it. In case you're new to cryptocurrency, you have to understand that the transactional speed compared to any other option is highly competitive. Instead of waiting a few days for a bank transfer, cryptocurrency transfers in most cases are instant.
So that's what happened in 2020. The world's financial system is shifting towards a more FinTech infrastructure.
Then 2021 arrived, introducing another element that's a ripple effect of cryptocurrency (which is as well a ripple effect of Blockchain) - NFTs. The concept of NFTs is mocked by thousands of people as it doesn't sound logical for someone to pay an enormous amount of money for a picture that could easily be replicated (that used to be the job of art collectors). However, looking beneath the surface, NFTs are introducing a new infrastructure of security that could be applied to other aspects (IDs, Passports, Ebooks, etc.)
Now, if you look at those two elements, Cryptocurrency and NFTs from this perspective. You'll realize that they are astonishing applications and will most certainly lead to technological advancements. Regardless of whether they're a bubble or not.
Using those technologies, a new industry is emerging.
Gaming is already a billion-dollar industry, and will always grow. We've played games ever since the stone age, and we'll continue to do so. Blockchain technology gave players a new incentive.
"If you'll play for a few hours, why not make money at it in the process?"
Now the concept of play-to-earn has been there for a very long time. However, the infrastructure built by cryptocurrencies and NFTs is the only difference now. There are tons of applications that connect gaming with the decentralized finance world (DeFi). Thereby, GameFi is here.
The concept that people could play and earn swiftly and on a daily basis was luring thousands of people. So, a gaming company decided to launch a game called "Axie Infinity".
The game itself is not that interesting compared to the worldwide gaming industry. They threw in this incentive and monitored the results.
2.7 million players.
40% of those are from the Philippines.
The game was valued at $3 billion
These are not just good results.
These are the results of the integration of Gaming with Blockchain, Cryptocurrency, and NFTs.
Personally, I'm a business consultant in Zurich. Over 10 clients in January contacted me in order to work on a whitepaper or a pitch deck for gaming initiatives.
Regardless of the crypto market's current performance, GameFi is here to stay. Hence, this integration is one of the hottest investment opportunities so far in 2022, because there is no stopping it. Whether the NFT market crashes or the crypto market booms, people will still game.
Several entrepreneurs know it, and big companies know it as well. Some companies are acquiring others just to get ready for this market growth. For instance "Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion". This might or might not be relevant for Microsoft, however, if this market keeps growing, more and more users are going to shift to GameFi initiatives rather than custom games.
According to an annual report, the industry of NFT games has generated $2.3 billion in Q3 of 2021 accounting for around 22% of all NFT trading volume.
This could be a new step in the world of gaming and could lead to something bigger. Cryptocurrency and NFTs were not intended to become what they are nowadays. Hence, one can only wonder what this GameFi industry is going to lead to.
I’m Al, a business consultant in Zurich, Switzerland. I believe in the power of delivering value to you, the reader. I’m focusing my content to be more and more on Medium, and Linkedin. Hence, follow me on both channels to keep in touch and connect.