The excitement surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF) has not only caused the price of Bitcoin to soar but has also rekindled enthusiasm in the crypto gaming industry. According to Yat Siu, the co-founder and executive chairman of Animoca Brands, the recent price gains in the crypto market have boosted confidence in the Web3 gaming market, also known as GameFi. This surge in confidence has led to a significant increase in on-chain activity related to blockchain games.
The Importance of Token Values in Blockchain Gaming
In discussing the impact of the price boost on the gaming sector, Siu emphasizes that token values play a crucial role in building confidence in the utility of blockchain gaming. It is not just about acquiring money but also feeling secure about ownership. Siu highlights that investor confidence is multifaceted and cannot be reduced to a single metric. Similar to assessing a country’s economy through different indicators, the evaluation of confidence should consider various factors.
Bitcoin’s Influence on the Crypto Ecosystem
Siu also points out that the entire crypto ecosystem is still heavily reliant on the growth of Bitcoin. He compares Bitcoin to gold in a traditional gold standard-based economy, referring to it as the reserve currency of Web3. The usage, storage, and ownership of Bitcoin form the foundation of the value in the crypto market. According to Siu, the approval of a spot Bitcoin ETF would bring legitimacy to the crypto industry and attract traditional financial institutions. This development would greatly benefit the sector. However, Siu envisions a future where the crypto industry will eventually move away from its dependence on Bitcoin, similar to how economies in the physical world transitioned from the gold standard to the current fiat standard. Siu believes that this transition will happen as the market matures.
