When Two Hypergrowth Themes Come Together

I’m not much of a gamer … video gamer that is.

An abstract illustration of an adult wearing an AR/VR headset.
Source: Andrush via Shutterstock

I’ve played them with friends through the years, but I never took it to the level a lot of people do.

Honestly, I have mixed feelings about the industry and where it is heading.

On the one hand, games have come so far. If you’re old enough, think back to the early Atari (OTCMKTS:PONGF) Pong game in the 1970s. It was two white “paddles” that you lined up to hit a little white “ball” back and forth.

Now, virtual reality (VR) and artificial intelligence (AI) let you do anything … even create your own world. I have experienced VR games at consumer electronics shows, and they really are amazing.

But that’s also what makes them scary. They are so … well … real.

I may not be a gamer, but I know an opportunity when I see one, and gaming qualifies. Add to it the revolutionary technology of cryptocurrencies and the opportunity becomes even more exciting.

In fact, it could turn gaming from a fun hobby into a lucrative career for a lot of people … and make a lot of money for investors as well.

The gaming industry has been on fire since the start of the pandemic. And it continues to grow rapidly.

Makes sense, right?

More people staying at home were forced to find new ways to entertain themselves. The entire industry is in a new phase of increased demand, driven by technological innovation and then accelerated by life in a pandemic.

Revenue from the global gaming industry is expected to surpass $138 billion this year, and by 2025 it should be upward of $256 billion. That’s a lot of upside in the coming years.

The companies at the forefront of this trend are benefitting tremendously. Roblox (NYSE:RBLX) just went public on the Nasdaq a month ago and is wildly popular. It did $1 billion in revenue in 2020 and is already trading with a market capitalization of $39 billion.

Epic Games remains private, but the creator of the extremely popular Fortnite game is valued at $18 billion. Another incredibly popular game, Minecraft, brought in about $415 million last year.

Modern day games are nothing like what we used to play. Not only are they much more complex with 10X (maybe even 100X!) better graphics, but they are also starting to take advantage of next-generation technologies …

Specifically cryptocurrencies and the blockchain technology they run on.

If you’re not familiar with new ways of gaming, they are whole worlds inside the virtual space. In interactive games, players can use real money — in this case cryptocurrencies — to buy virtual goods. Maybe it’s a new sword to battle your enemies or a new outfit to go to the pub. Think of the games as virtual reality where goods cost money … and cryptocurrencies are the accepted currency.

But there is one major difference with games built on the blockchain versus a traditional platform …

Right now, when gamers purchase goods through Fortnite or Minecraft, the goods come off a database and are basically “unlocked” for you. You do not really own them. But when you make a purchase on the blockchain … you really do own that sword. That means you can use it anytime you want, or even resell it.

Think about the possibilities this opens up.

The gaming industry is already much bigger than many people realize. According to the Entertainment Software Association, three out of every four American households include a gamer, and nearly two-thirds of U.S. adults play video games.

I guess that puts me in the minority. But again, I don’t need to be a gamer to see the massive potential of this booming trend.

One example of these virtual worlds is called Decentraland (CCC:MANA-USD), which is built on the Ethereum (CCC:ETH-USD) blockchain.

Just like in Minecraft, users can purchase, build and monetize virtual reality applications. They can own land … they can offer goods and services … and so much more. All of it is done using the platform’s own crypto called “MANA.”

Decentraland is the fastest-growing crypto-based virtual world out there, and it’s also one of the most developed. And as a result, it’s catching the eye of the big boys.

Atari — one of the pioneers of the gaming industry — is building a cryptocurrency casino in a Decentraland district called Vegas City. The casino is being built on virtual land that has been leased for two years and will feature Atari-themed games.

So there you go. Want to have some Vegas-like fun without going to Vegas? Get comfortable on your couch and step into the virtual world of Vegas City. No flights or hotels to book.

Decentraland isn’t the only blockchain-based gaming world out there. In fact, just last week I recommended another blockchain-based game to my Ultimate Crypto subscribers.

Just like Decentraland, it’s combing two of the hottest industries in the entire market right now — gaming and non-fungible tokens (NFTs).

NFTs, or non-fungible tokens, are virtual tokens minted on the blockchain. Unlike Bitcoin (CCC:BTC-USD), where one Bitcoin is identical to another, NFTs are unique, indivisible and non-interchangeable. In other words, they are one of a kind. And the key is that they allow true digital ownership of in-game assets.

In other words, NFTs mean that gaming can be more than just a fun hobby. It can be a career.

Top-tier developers — meaning the “big money” — are moving into this space quickly, and I expect the trend to build in the months and years ahead. And with that extra money sloshing around in the industry comes an incredible opportunity for opportunistic investors.

We are still very early in this new and exciting phase for cryptos, the blockchain and gaming. And smart investors have the opportunity to beat the big money in now.


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