The uncertainty around cryptocurrencies is palpable. Critics who have long watched in dismay as the sector continued growing are now issuing exuberant obituaries. Yet, long-term crypto holders retain an unshakeable faith in this sector. Crypto gaming platforms like BC.Game are operating amid these turbulent times in the market.
It is impossible to overstate the gravity of the market slump. The overall crypto market capitalization is less than $1 trillion, having crossed $3 billion at peak market highs in November 2021. Bitcoin has lost over 70 percent of its value in a similar timeframe. Many investors are licking their wounds from the severe market rout. Gaming platforms occupy a unique role in the crypto landscape. Crypto gaming platforms like BC.Game are in the broader crypto industry.
Regardless, their value proposition is not the value of cryptocurrencies but rather the number of gambling enthusiasts on such platforms. Some will undoubtedly feel the effects of the crypto bear market. Others will hold up better and stave off the storms that look all-consuming now.
The State of the Crypto Market
Cryptocurrency markets are a rollercoaster ride, unlike any other asset class. These decentralized assets are subject to pure market forces, so prices swing wildly. Those who have been around for a while have seen similar cycles. Well, to cut the chase, things are mostly in the red now. The broader global economy is in a tailspin, with inflation soaring in most major economies. Cryptocurrency, a risky asset tag, has seen traders sell off in droves in the past couple of months. Here are some of the reasons fueling the market slump:
- Many leading economies have a general economic slump from supply chain shocks and inflation. This slump has led to genuine fears of a recession in the near term. Investors are buying less crypto, which they consider a risky asset.
- The Federal Reserve has indicated further interest hikes, making borrowing more expensive and investment in secondary markets smaller.
- A pause in withdrawals by Crypto lending service Celsius further fueled the slide.
- Geopolitical uncertainty stemming from the prolonged Russia-Ukraine war has worsened the economic outlook.
Therefore, trends in the broader global economy have weighed heavily on crypto prices.
The Mega Correction and What It Means
It is hard to overstate the full scale of the market crash. The financial world paused to watch crypto like a shooting star in late 2020. DeFi was booming, Bitcoin was breaking record after record, and things looked generally rosy for this nascent industry. Somehow, in mid-2022, the crypto sector feels at a crossroads. Major coins are haemorrhaging, with analysts unsure how much the market can continue to sink. Bitcoin survived many previous market plunges, but this one is the biggest yet, under the magnitude of the drop-off. In the short term, this misfortune will slow the momentum crypto has attained in the past couple of years. 2021 was a particularly incredible year for sectors like decentralized finance and NFTs, which have become central fixtures in the crypto discourse. Here are some things to expect from the mega correction:
- Hundreds of non-viable or unsustainable crypto projects will collapse. LUNA is undoubtedly the biggest casualty.
- Stablecoins like USDT will likely attract regulatory scrutiny.
- A core group of crypto believers will hold their coin and ride out the bear market.
How Online Gambling Platforms Perform
The growth of decentralized finance and NFTs positively influenced blockchain gaming. The market slowdown negatively affected the crypto gaming scene by heavily using NFTs.
Gaming platforms that have a shaky foundation will likely feel the heat. The bear market may affect user volumes in the short term. Such drops may be catastrophic for relatively small crypto gambling platforms. Besides, the likely regulatory scrutiny emerging from the LUNA fiasco could create a Pandora’s Box effect that will impact unregulated crypto gambling platforms.
The latter half of 2022 will probably mean less investment into crypto gambling games. Therefore, users must contend with established brands and NFT collections with name recognition and market backing to ride out the storm.
Therefore, it is time for gaming platforms to buckle up for the rough ride. There will be challenges from multiple fronts, the most prominent of which are market declines and likely regulatory scrutiny.
BC.Game Is a Cut Above the Rest: Here’s why
When the going gets tough, the tough get going. The crypto gambling scene is rife with projects that are all glittery with no substance. Such projects come under strain when the market is rough.
BC.Game has gone the extra mile promoting transparency by having an open-source project. Its source code is available on GitHub for the public to verify its legitimacy and the 1% house edge. Open source coding is a fundamental trait of blockchain technology. This technology is transcendent and proves usefulness beyond the upheaval typical of cryptocurrency prices.
The open-source algorithm also allows users and analysts to scrutinize the randomness of BC.Game’s algorithm. Provably fair gambling is a core aspect of legitimate crypto gambling platforms. This trait ensures that the online casino doesn’t manipulate results to defraud users in their gaming activity.
Additionally, BC.Game offers the perks of a top crypto gambling platform. They include the welcome bonus, promotions, tournaments, and incredible payment efficiency. Finally, BC.Game has an international presence with licenses from the UK Gambling Commission, Malta’s Gaming Authority, and even the coveted Curacao gaming license. The licenses reflect a large-scale organization with a presence to endure the good and rough times in crypto. These are the hallmarks of a safe and reliable gaming platform.