Over the years, governments, corporate bankers, regulators, non-believers, and many others have constantly termed crypto as a ‘speculative asset with no real use cases’. Most analysts have always been proponents of the idea that the crypto community and projects need to emphasize real-world use cases to beat the long-standing crypto winter that the industry has faced over the past two years. As a way out from the bear market, many analysts believe the community need to discard the “number go up” mentality that underpinned the pre-winter crypto market and instead focus on real solutions that solve real human and environmental issues.
Proponents argue that a constant inflow of cash into decentralized finance, NFT, or GameFi markets would be possible if a real-world problem is solved, rather than the industry offering higher yields and incentives to attract investors.
On the surface, speculation could seem as the driving force that has minimized the overall impact of blockchain and crypto. However, as important as it is to build real value products and solve real-world problems, we need to look at the purpose and need of speculation in the crypto space. As crypto is still in its juvenile stages of growth, speculation could be a vital component in growing the market. It is how investors determine which ideas, projects, platforms or businesses have the potential to win or lose in the long run.
Speculation may be just what crypto needs as an industry.
How does crypto speculation turn investors away?
Innovation breeds speculation, as industries try to find a balanced market and fair prices for their assets. Nonetheless, the abundance of scams, and useless or copycat projects discourages many investors from touching the industry, let alone placing their dollars in it.
The problem with speculation in crypto is that many investors are not educated enough on the subject. This makes them vulnerable to security and investment-related risks. Speculation requires investors to have a high degree of knowledge and monitor the markets closely before placing their whole investment in it, or else they would just be gambling their money away.
Additionally, the current channels of speculation, including centralized and decentralized exchanges are complex in nature, making it difficult for newbie users to speculate on their favourite assets.
Finally, the current market structure does not entice users to join in the speculation game. Investors rarely make any profits from speculating on future prices, with only a few early investors having the opportunity to make big bank, while the rest either make meagre profits or losses.
Why gamifying speculation could solve tough crypto markets
The rise of X-to-Earn platforms is slowly shifting the tides on crypto speculation, as users do not need to directly invest in the tokens but rather complete an activity to earn the tokens. Banksters, a play-and-earn NFT game that rewards users for understanding trends in the crypto market, aims to ease speculation in the market, allowing anyone to participate in predicting future crypto asset prices.
The game requires a bit of skill in the market. Unlike real market speculation, where you compete with the invisible market speculating whether the asset prices will go up or down, Banksters turns speculative trading into a game. The exciting game allows players to battle, not with the invisible market, but with each other. This allows traders to find out who is a better trader because few traders will show the worth of their portfolios or admit what start-up capital they started with. Additionally, they have no goal to compete with anyone in trading.
The game is directly connected to the crypto market whereby if a player correctly guesses the price direction, they get points and lead, while if a bankster predicts wrongly, they have a set of abilities such as (Elon’s tweet, CZ’s remarks, Rally) that can change his position on the market to a positive one.
This opens up gamified speculative trading without the massive consequences of losing your whole investment. The players can challenge each other on the platform to predict market trends and earn rewards for winning the challenges.
In simple terms, the game makes crypto speculation “fun” for the traders, whether it be trading, mining, swapping, buying, and selling crypto and NFTs on the platform.
Can crypto experience another speculative bull run after halving
Several theories have popped up on the possible return of a bullish crypto market following the Bitcoin (BTC) halving next year. As far as speculation goes, most traders believe the bull run will commence in the later stages of 2024, following Bitcoin’s halving. One such theory is the ‘November 28th Cycles Theory’ by X (formerly Twitter) user, CryptoCon who believes Bitcoin’s price movements are cyclic. As shown in the image below, the theory predicts each cycle lasts approximately four years, and all of them centred around the date of the first Bitcoin halving event, which took place on November 28.
Notwithstanding, an analyst from Finance Magnates believes the Bitcoin halving event promises a bullish market, as historical data shows. Each of the past four halvings has often accompanied large price gains as the slowing of new supply, along with rising demand, causes a supply-demand mismatch that can drive up prices.
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