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One of the most interesting areas of analysis right now is crypto’s influence on entertainment investments. Savvy investors who want to be able to diversify their portfolios and take up positions with the potential for long-term growth and increases in value are increasingly turning to crypto-driven entertainment options.
If you are reading this and have immediately reminded yourself that some crypto investments can have higher degrees of volatility than other assets, keep reading. We’re going to show you that by changing the way you think about the role of cryptocurrencies, you can change the way you approach structuring your investment portfolio.
More Than Simply Holding Crypto Coins
When many of us think about investing in the crypto industry, we think about buying and selling coins and tokens. This is the most fundamental way, of course, but it is no longer the only way. Today, cryptocurrencies have evolved far beyond simple assets that have the potential to gain and lose value, but with few real-world applications beyond pure investments.
The entertainment industry has been leading the way when it comes to accepting and leveraging cryptocurrencies in a wide variety of ways. From games that reward you in cryptocoins for the amount of time that you spend playing, to pay-to-play games and casinos that allow you to deposit and withdraw cryptocurrencies just as you would with fiat currency. There are more options that you may be aware of right now, and it’s investing in several of these options that could help you to diversify your portfolio while at the same time allowing you to get in on a low floor and ride a new elevator.
Let’s take a look at some of the new entertainment paradigms that are rapidly opening up so that you can consider where you may want to make your next wave of investments.
Pay-To-Earn Drives Engagement
Pay-to-earn is a model that gives players fractional cryptocoins whose size is determined by the length of time they play for. The idea here is to seemingly give them something for nothing — they are unlikely to assign an inherent monetary value to their spare time — and boost engagement in the process. The more they play, the more they earn, and the more the platform will grow as a result of the increase in its online footprint.
One of the interesting things about these types of models is that they can often hold the attention of players significantly longer, especially when multipliers are added. If a player is told that when they reach X number of hours played, a multiplier whose value is Y will be applied to all future fractional coins they earn, they are very likely to continue playing. The use of crypto makes these types of offers 100% secure and transparent with regard to withdrawals and ownership. Ideal when gaming developers want to be able to first attract, and second hold, the attention of a whole new wave of players from all walks of life.
New Payment Gateways Grow Userbases
Payment gateways are things that are all too easy to overlook in the entertainment industry, as it is a space where many see content as by far the biggest thing that matters. One key point that this analysis misses, however, is that there are so many different methods of payment, and yet typically we only make payments from a single device: our phones. The point here is that we want to have things that are as simple and streamlined as Amazon Prime’s famous one-click order button, but the vast majority of entertainment platforms have yet to make things that simple.
If you consider platforms such as Bitcasino, you get a sense of how they are looking at these types of problems from a different angle. Because they accept crypto rather than restricting users to fiat currency, they open up a whole new range of payment gateways that are designed to democratise the signup process. Platforms that do this instantly grow their potential user base, making them more robust from the point of view of a potential investor.
The Growth of Crypto Gaming
Following closely from the previous point, we have the robust and consistent growth of the crypto gaming space. New formats and methods of play include things such as crypto video slot games and crypto poker, both of which take the traditional games that everyone will be familiar with and then open them up. The synergy between the casino world and the crypto world is clear when you think about the advanced security options that the use of blockchain technology provides.
An increasing number of online players are exploring the world of crypto gaming as they search for something new and because they have a desire to improve their personal security online. The point here is that by investing in businesses and companies that are taking these types of steps, you give yourself the potential to ride a wave that is only just starting to gather momentum.
Flexible Royalty Distributions
Another fascinating investment area is music, whether it be music distribution platforms or the artists themselves. New artists from all over the world are finding that they can face slow royalty payment releases and unreliable security that varies too much for their liking from one platform to the next. The interesting thing about the next wave of music platforms and deals is that a growing number of them are crypto-driven, meaning that they can truly democratise the royalty payments and subscription payments. It’s the former that really matters from the point of view of potential investors.
New platforms often go from surviving to thriving by signing exciting new talent to exclusive deals. By being able to offer artists all over the world the potential to get 100% secure royalty payments in a manner that works for them, such platforms give themselves much more potential to grow. This is what an investor will want to see when they are assessing their options.
Enhanced Fan Engagement
Fan interaction through digital paths, such as NFTs, is another way that platforms and artists can boost the amount of interaction they have with the people who buy their content and merchandise. Investors can benefit from this emerging pattern too by performing a detailed analysis of the month-on-month growth in fan and user engagement. The more robust the growth, the more potential there is to adopt an exit position that will have a significant multiple attached to it. Exactly what you want to hear when you’re looking to make your portfolio’s future performance more robust and predictable.
The Future of Crypto-Driven Entertainment
Continually analysing the emerging landscape will ensure that you can adopt positions that have the greatest potential for growth on an accelerated trajectory. The more analysis and time spent assessing potential investments, the more sideways and parallel opportunities can be identified along the way. It’s this type of comprehensive and holistic look at a rapidly evolving industry that investors are increasingly focusing their efforts on.
By taking an open-minded look at how everything fits together, investors can set the tone for a forward-thinking approach to structuring their investment portfolios. At the same time, they can free themselves from outdated thinking that assumes that legacy media and associated forms of entertainment are the future of the industry. It is fragmenting and diversifying, and this is something that should be reflected in the investment portfolio of any savvy investor in the second half of the decade.
Final Thoughts
By taking your time to assess each of the options above, you can free yourself from the type of conventional thinking that will see you miss out on the next wave of innovation. Taking a closer look at crypto-driven entertainment is all about giving yourself the chance to look at the next generation of online entertainment services. Rather than thinking about holding cryptocurrency and looking to figure out when it will go up or down, you give yourself the option to invest in the businesses that use it.
The beauty of this approach is that you are opening up and diluting the risk profile of your portfolio, allowing you to potentially profit from an overlapping series of investments. Make sure that you perform the same checks, balances, and due diligence that you would with any form of investment, and you will be taking the same meticulous approach you always have.
Start with the areas of focus outlined above, and you will be able to identify potential candidates to join your portfolio before you know it.
