Is VC Prepared For A Two-Year Cryptocurrency Bear Market? Avichal Garg
Avichal Garg, CEO, and co-founder of Electric Capital describes the projects that, in his opinion, are ready for spectacular growth in the next bear market. Avichal Garg, CEO and co-founder of Electric Capital, sees himself as “an NFT maximalist.” According to Garg, nonfungible tokens (NFTs) will play a vital role in the widespread acceptance of cryptocurrencies. Unlike other segments of the cryptocurrency industry, they may understand nonfungible permits in terms of real-world sectors, such as the arts, music, and gaming.
When we assess where we are as a sector, we see that everything we had hoped for during the bull market in 2017 has transpired.” When we analyze our present condition, this is the case.” this should inform you that these establishments may exist in this neighborhood. Proof-of-stake is now being implemented, and ether does not guarantee security. “L2s do have some value.”
“There is DeFi; there are NFTs, and, as far as I am aware, crypto firms do initial public offerings (IPOs). It is incredible to realize how quickly growth and change have occurred in the last four or five years,” said Garg.
“I may think that NFTs are billions of individuals since, eventually, everything comes down to culture. And it’s something everyone can take part in and comprehend,” Garg remarked.
Garg is optimistic about the applicability of NFTs in the gaming sector, which he says is expanding ten times faster than other industries. He predicted that there would be a flood of NFT-based video games over the next 18 to 24 months. He said, “I anticipate an avalanche of (NFT-based) games.”
Binance CEO Says Bear Market Is ‘Healthy’ for Crypto – Raleigh News & Observerhttps://t.co/ExH7uHiaFC#BinanceSociety #crypto #bitcoin #cryptocurrency #cryptocurrencies #cryptonews #blockchain #btc #eth #binance
— Binance Alliance Society (BAS) (@BinanceSociety) September 23, 2022
Since the beginning of the contemporary sector age, let’s say 2008, with Bitcoin, the macro tailwind has been our key source of support. You have seen central banks cutting interest rates and stock markets appreciating. As a result, our understanding of what transpires in a bear market environment is limited. When central banks increase interest rates, the results are often uncertain. However, this does not always imply that the contrary is true. This does not necessarily mean that Bitcoin, Ethereum, and other cryptocurrencies are unsuccessful. It just suggests that we are doubtful. The ongoing influx of funding is likely because this is a highly inventive topic, and we have not yet reached the apex of the innovation curve. And it is still in its infancy in terms of technological development, but these things function independently of macro-level occurrences. Therefore, from an intellectually honest position, he believes it is necessary to assess this risk and remark, “Okay, well, these things may disconnect.”
According to Garg, the bear market might linger as long as increasing inflation continues to dominate the macro picture. This suggests that the market’s next bull run may not materialize for another year or two. Nevertheless, when he extends his perspective beyond the present state of the macroeconomy to a horizon of 10 years, he has a very hopeful outlook for the bitcoin business. He has a highly bullish outlook on gaming, NFTs, and the whole ecosystem of a bear market. We continue to notice a flurry of activity in the gaming industry, which we view as one of the most promising subindustries within the broader “metaverse” category (whatever that word may mean to you).
Nonetheless, we do invest in the two neighboring areas. The critical issue is the infrastructure or the system administering these games. As a result, many individuals are striving to discover the fundamental infrastructure required for a game developer to do this task. And for instance, do you need layer 2s as a service, do you need to run them on Optimism, or do you want to run your own layer 2, your validator set that syncs out and that you can change to your toolsets or white label marketplaces for NFTs in your game? If this is the case, you must run your own layer 2. Similarly, Magic Eden is working actively on a variety of similar endeavors. Nonfungible tokens (NFTs) are the next category because he believes that the interoperability that NFTs enable across video games will be great.
“Interest rates and inflation are the most critical factors in the next two to three years. However, innovation is the decisive factor over time,” he said.
Instead of spending money on advertising, NFTs will be utilized. This additional discretionary cash should be invested in the metaverse. Therefore, NFTs are the technique by which this is accomplished this time around.