There’s a lot in common between gaming and the cryptocurrency industry. Far more than you might initially realize. Gamers have been adapting and using new and experimental cooperative technology for generations, well before the likes of Bitcoin ever hit the scene.
This means that crypto investors have a lot to learn from gamers, and not just when it comes to the use of blockchain technology. Trading cryptocurrency involves the buying and selling of a digital asset.
While this might be new to the majority of the population, gamers have been doing it for decades. Not only are games themselves digital goods, but titles like World of Warcraft and CSGO have fully developed and dedicated internal economies that operate with remarkable similarity to how crypto works.
We’re going to talk about this in more detail, as well as what lessons crypto investors can take from gamers to help improve their trading game.
The Similarities Between Gaming and Crypto
When analyzing the similarities between gaming and cryptocurrency, our primary focus is going to be how digital economies develop.
Both in-game items and crypto coins are only worth what players and traders value them at. This value is determined by supply and demand, meaning real-world economics very much plays a part in gaming economies, as well.
First, let’s talk about how the supply of gaming items and cryptocurrency affects the price and what investors can learn from that.
The law of supply is arguably the most impactful economic law in the world. The less of something there is, the more it’s worth. This is a simple premise that dictates the value of everything from property to gold. It’s no different in gaming or crypto.
In cryptocurrency, supply is determined by the blockchain technology that the developers of any given currency are using. In most cases, it’s a finite resource. However, it’s a finite resource that needs to drip-fed into the market over a series of years.
This is because crypto trading faces an issue that gaming economies don’t, and that’s market cap. Market cap is the value of every single individual coin in circulation right now. It’s what determines the overall worth of an asset and why even with crypto having a limited supply is important to increase the value of any given coin.
Supply in gaming, on the other hand, typically relates to one of two things. Either it’s a limited-time item, or it’s an exceedingly rare one. Both of these scenarios result in very small supplies, thus increasing the value of any given item.
Earning items that are rare simply requires a lot of time commitment, so there’s nothing to learn there. However, limited-time gaming economics does present an opportunity for investors to learn. Specifically, it highlights how important it is to be both attentive to the current economic climate, as well as to be opportunistic.
While cryptocurrency isn’t technically a limited-time investment, it is in the grand scheme of things. As time goes on, it gets harder and harder to enter into the market at a profitable point.
This means that traders, like gamers with limited-time drops, need to be paying attention and ready to jump on any opportunity as soon as it presents itself.
Treat your ability to invest in crypto like a limited-time event that you don’t know is coming up. Keep yourself ready to invest at a moment’s notice, and pay attention to when that time comes.
Demand is an interesting topic in the world of cryptocurrency. Bitcoin, despite not being the most technologically advanced coin, has the highest demand in the market. This is because it’s a staple. It’s a coin that everyone knows about, knows how to trade, and knows what it’s worth.
Altcoins, on the other hand, are more niche and valued based on individual case-use worth. Coins like XRP get value from how fast it can transfer funds, whereas the likes of Doge is a social-based coin.
This isn’t dissimilar to gaming. The items that are in the highest demand aren’t often the strongest, but rather because they’re staples that everyone uses regardless of specialization. It’s only after players have the staples they need that they begin to buy and invest in more specialized equipment.
This presents perhaps the biggest lesson that investors can learn from gaming, and that’s how to build a cryptocurrency portfolio.
Bitcoin isn’t the king because of the tech; it’s the king because everyone uses it. So invest in it before you start looking at niche altcoins. It’s a universal part of everyone’s portfolios because it’s a coin everyone uses and a language that everyone speaks.
Only after you have your core portfolio built should you start looking at altcoins. Don’t run before you can walk.
How You Can Get Involved with Cryptocurrency
INX is a new security trading platform designed to facilitate the secure trading of tokens. It aims to be a generalized and streamlined method for both suppliers to list tokens, as well as for the general public to invest in them.
You can find more information on our INX security tokens by following the link. Each of these presents a different use-case scenario that allows you to take advantage of technology rather than a social investment like Doge or Bitcoin.
We aim to provide an intuitive trading platform for investors of all experience levels. We comply with all financial regulatory oversight to ensure all of your investments are covered by federal and international law.
Our smart and intuitive trading platform allows for continued, uninterrupted trading 24 hours per day with no downtime.
By investing in the INX token blockchain, you’re tapping into a market that has so far gone under the cryptocurrency radar. However, with the bull run that 2021 has seen for crypto, it’s unlikely to stay untapped for very long.
You can find more information about the technology that INX uses over on our website, as well as answers to any of the questions you might have.
INX is the future of token trading, so take advantage of the IPO we’re offering while you can.