I have always avoided investing in Cryptocurrencies mainly because I didn't see the intrinsic value of the coins. What actual use do they have in the real world? Some people argue Bitcoin is a store of wealth, a way to diversify your investments. Yeah, but that is not good enough for me. As was promised before in the blog post about the metaverse properties, I tried to keep up-to-date with what was happening in the crypto + NFT space.
MANA & SAND Coins
Two of the biggest Metaverse platforms right now are Decentraland and The Sandbox. These platforms allow game creators to easily make games using their game creator software and deploy them onto the platforms to be discovered by other players. The MANA and SAND tokens are used to purchase digital assets that game creators can use to create their games. Everything you can buy and sell on these platforms (real estate, cars, avatar outfits, etc.) is priced in these coins. This is why the future value of these coins will depend on how likely they will pass the test of time as the most popular Metaverse platforms. I believe that these platforms have already established themselves well and have a clear target market: simple casual games in voxel aesthetics.
Current Prices of MANA & SAND
Both of these coins have recently experienced a significant price crash.
Their crash started happening at the same time, which was the end of November 2021. All other cryptocurrencies also got hammered around this time, but the game-related coins had the worse crash.
When Am I Buying?
There is no doubt that the speculators have overhyped these coins at their peak prices. Nothing in this world should be 10x in value within one month without a legitimate reason. The price crashes we are seeing now are a healthy correction, and I consider these two coins my first ever cryptocurrency investments. I feel like the timing isn't quite right to get in now for the following reasons. Inflation has been on the rise since the beginning of this year. We are seeing more and more contributing factors that are worsening the supply chains, like the Russia-Ukraine war, inflated oil prices, and the ongoing pandemic. People do not have the luxury of spending money on entertainment when they have difficulty putting food on their tables. This is why so many people have unsubscribed from Netflix, and Netflix experienced the biggest one-day loss in its history. My educated guess is that the last thing people want to do is spend money on games like Decentraland and The Sandbox if they are not willing to spend money on Netflix. For now, I have to see some signs of getting inflation under control, and I will pull the triggers on these coins.